The Research On Pricing Mechanism Of Painting Art

By comparing the market of art in China with the west, this paper determines the present stage of the Chinese art market objectively, and reveals the hysteretic situation of the study in art pricing theories and the reasons why the price in the art market is confusing. Then it carries out qualitative analysis, quantitative analysis and game analysis. Based on art pricing mechanism, it proposes specific measures on how to foster art market and makes suggestions on how to build and perfect related systems.The innovations of this paper are listed below:1) As for auction market, according to the calculation by the writer, the average correct ratio of the auction companies'evaluation is only 30%. It means that less than 30% of the traction price falls into the evaluation range, and there is no big difference regarding work types (Chinese painting or oil painting) or repute of the painters, except that for famous painters'works, the underestimate rate is even higher. This conclusion is one of the innovations of this paper.2) Making use of Hedonic model, this paper does empirical research of pricing for works of Chinese modern and contemporary art and the result suggests that the size of works not only has positive correlation with the price, but also plays a major role in pricing. Because the chosen samples are auction records of modern and contemporary artists'works, the creation age does not have a prominent effect. In overseas, Hedonic model does not take GDP as one variable, because it's not the attribute of artworks, but considering that GDP is not only an obvious factor which affects the demand for artworks, but also independent of other attributes of artworks, this paper takes GDP into the model as one variable, which not only gains support from economic theories, but also gets persuasive results. This is the second innovation of this paper.3) Based on the particularity of Chinese art market at present, this paper discusses the equilibrium situations when artwork holders and inside investors conspire fraudulent auctions and when artwork holders, auction house and inside investors conspire fraudulent auctions. The result shows that a reasonable pricing system and sound art market regulations are the primary measures to prevent conspiracy auctions. This is the third innovation of this paper.4) At present, incomplete information makes Chinese art market a "durian market". It means that under the condition when the social funds are abundant and the information is incomplete, the number of fakes will rise together with price in a market where artworks are for showing off. The concept of "durian market" is the fourth innovation of this paper. 5) In view of the fact that there are many problems at present development stage of Chinese art market, we have to start with market fostering and market regulations to make it develop healthily. Important measures include:to build a credit system in art market, and "Electronic database of painting works of all Chinese artists", including developing painting comparison technology; to perfect art industry investment and financing systems and electronic transaction database of art market; to draft "Regulations for evaluation standards of art market", "Artworks insurance law"; to perfect related rules such as "Intellectual property protection law"; to reinforce law enforcement ability of art market supervision, etc. Integrated and comprehensive discussion of market fostering and regulation construction for artworks pricing system is the fifth innovation of this paper.