Research On The Impact Of Artist Death On Price Of Art

The Chinese art market has existed for ages,but in modern times,art trading has been concentrated in Western cities such as London,New York and Paris.In recent years,with the rise of a number of domestic art trading markets,making the domestic cities represented by Beijing,Hong Kong,etc.gradually become important world art trading centers.In contemporary times,with the stock market and real estate market in a sustained slump,a large amount of liquid funds have poured into the Chinese art market in order to chase high net worth and high returns,giving a great boost to the market.But then due to the continuous strengthening of market supervision and the impact of the new crown epidemic outbreak,the total volume of art auction sales fell significantly,and gradually rebounded until recent years,which also fits with the background of China’s economic transition period.At the same time,the art market for diversified asset allocation inherent demand also makes art is no longer just purely artistic creation and has experienced the development of commercialization,asset,financialization,the entire art market is gradually beginning to diversify development.This has led to the emergence of many inherent problems in the art market,of which the valuation of artworks and the factors affecting their prices are one of the main topics attracting the attention and debates of academics and investment professionals.Therefore,this paper attempts to use an econometric model to analyze in depth the influence mechanism and effect of the factor of artists’ death in the artwork price formation mechanism,with the aim of providing some theoretical basis to solve the problem of the complexity of artwork price composition in the current artwork price research in China,and to provide support for advancing the theoretical research of the domestic art market.The main research contents of this paper include the following aspects: First of all,it ordered the research results on the influencing factors of art price and art pricing theory at home and abroad,focused on the death effect of artists among the influencing factors of artists’ own characteristics,and used the hedonic price method to study the formation mechanism of art price;secondly,this paper defines the death effect of artists,the definition and attributes of works of art,and combines the "art price theory","market supply and demand theory" and "durable goods monopoly theory" to theoretically analyze the relationship between the death of artists and the price of works of art,and puts forward three hypotheses;thirdly,collect art auction data and artists’ personal data based on arton net,Baidu Encyclopedia and artists’ personal official website,and use hedonic price method to build art price index;Fourthly,first,the results of its benchmark regression were analysed,which showed that the death of an artist leads to an increase in the price of his works,and that the death of an artist has a significant positive effect on the price of artworks;secondly,further grouped regressions were conducted on the age of the artist in the year of the auction,and the results showed that the scarcity effect caused by the reduction in inventory after the death of an artist causes an increase in demand and thus an increase in price,while the expectation of death leads to the rise in current demand due to death expectations also leads to a rise in current prices and a fall in prices after death,while the production value between expected and actual production of future works exerts downward pressure on the price of works;further regressions are grouped on the number of lots in the year of the artist’s auction,and the results show that when the number of lots in the year is low,a rise in demand leads to a more substantial rise in prices,and conversely,when the number of lots in the year is high,a rise in the number of lots in the year weakens the impact on prices caused by death shocks.