On the Law and Economics of Arts: A Research Proposal
On the Law and Economics of Arts: A Research Proposal

Author(s): Julia M. Puaschunder
Subject(s): Law, Constitution, Jurisprudence, Financial Markets, Socio-Economic Research, Sociology of Art
Published by: Scientia Moralitas Research Institute
Keywords: arts; behavioral economics; commercialization of arts; cryptocurrencies;
Summary/Abstract: Arts is as old as humankind and a worldwide phenomenon. A scientific investigation of arts, however, is rather seldom since the arts are oftentimes applied and touch on multiple disciplines. Arts production and consumption are perceived as less rational and tangible than classic goods and services. Neoclassical economics therefore hardly has any account of the commercialization of arts. The opening of the neoclassical economics model for behavioral aspects in the behavioral economics revolution has now paved the way to start researching the arts and surreal pricing mechanisms in the arts world. This paper is a call for research of arts from a Law & Economics perspective. Law & Economics offers ways to understand the value of arts in society and derive inferences on how to improve certain features and peculiarities of the arts market. A Behavioral Law & Economics perspective could help elucidate social welfare enhancement potential for the individual passive consumer of arts, the active arts market actors as well as economies and society as a whole, including future generations. With the growing commercialization of arts and rising use of arts as an unregulated collateral in the finance world, capturing the peculiar dynamics of arts markets holds unprecedented value. Legal recommendations could target at addressing market downfalls and risk management strategies in the arts world.

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