Analysis and Aspects of Art as an Alternative Investment and its Price Determinants
|Author:||Bc. Alica Mozolikova|
|Year:||2018 - summer|
|Leaders:|| doc. Ing. Vladimír Benáček CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The purpose ofthis thesis is to examine the potential of art as an alternative investment.
To do this, we start with a brief history of art market that is followed by an analysis of
art market structure. We cover numerous risks affecting the behavior in the market
subject to information asymmetry. As far as the feasibility of art as an investment is
concerned, we identify different types of alternative investment and compare their
potential. Despite high opacity of the art market, more data are being made available
giving us an opportunity to present a clearer explanation of the current state of the art
market. A question has to be asked, does the value of art solely depend on the
subjectivity of human taste or on an opportunity to speculate? The subject of the
detailed discussion are, both, internal and external factors, which influence the value
of artworks, and hence the sale price. Using econometric analysis of auction records,
we aim to uncover objective factors, which determine the sale price. The analyses lead
to a conclusion that the price determinants, the most notable of which are auction
houses and auction location, affect the sale price to a different extent. Yet, regardless
the price, our subjective personal pleasure from a particular art piece might be crucial.