the curious economics of contemporary art

The work itself is an actual dead tiger shark suspended in a formaldehyde solution encased in glass, funded by the noted collector Charles Saatchi and purchased in 2004 by hedge fund billionaire Steve Cohen for an amount rumored to be between $8 and $15 million. As an art book, you may find it discouraging.Ī great example is the piece referred to in the book’s title, officially known as “ The Physical Impossibility of Death in the Mind of Someone Living” by Damien Hirst. As a behavioral finance book, its a fascinating look at a fairly opaque market. He explores the roles of the artist, the auction house, the dealer, the art fair, and the collector, all of which are driven more by money than any true love of art. In this book Thompson, an economist and business school professor, unpacks the high-end contemporary art market from all angles through an engaging narrative. It was with that perspective that I read The $12 Million Shark: The Curious Economics of Contemporary Art by Don Thompson. “How could that be considered art, let alone be worth that much money?!?” In fact, when one of these pieces changes hands for staggering sums I’m much more prone to indignation or ridicule. Paintings, sculptures, and multimedia installations that seem designed to provoke, rather than inspire. On the other hand, what I don’t tend to think of is contemporary or modern art pieces by Damien Hirst, Andy Warhol, or Jeff Koons. They are in fact, priceless, and we all generally seem to take that for granted. These are rare, beautiful objects that can never be replaced.

Though “immeasurable value” isn’t correct, as once in awhile one of these paintings comes up for auction and, while we might gawk at the price, no one ever seems to question it. Breathtaking masterpieces with seemingly immeasurable value that hang in museums for all to enjoy. When I think of art, paintings by Rembrandt, Monet, and Van Gogh come to mind.

The curious economics of contemporary art