The Art Game
William J. Baumol, in The American Economic Review (May 19861, 1313 21st Avenue So., Ste. 809, Nashville, Tenn. 37212-2786.
As masterpiece paintings command ever-higher sums at Manhattan auc- tions, art investment has come to look like a sure-fire way to show off and make a profit.
But Baumol, a Princeton economist, argues that big price tags do not necessarily mean big profits from paintings.
Drawing mainly on Gerald Reitlinger's three-volume compilation of art sales data (The Economics of Taste:...