Econometric models for art are not all
equal in their accuracy. The biggest challenge from the econometric model's
side is that art value can't be measured as solely monetary; it's more of an emotional
and cultural thing. But how accurate are these models in capturing the essence
and value of art?
Understanding
econometric models in art
The application of mathematical formulas
along with statistical techniques in trying to analyze and predict trends in
finance has been the case in econometric models. If these are applied in the
art market, the factors of artist popularity, historical sales data would
predict the value of potential art.
1. The challenge of subjectivity
2. Levels of accuracy
3. Future developments
The
challenge of subjectivity
While a stock or piece of real estate has a
more or less definite price, the worth of artwork may entirely depend on the
prevailing taste and trends, which could dramatically shift overnight.
According to Art Advisor London, one factor that may decide
an artist's popularity when created can drastically affect an entire piece.
Levels
of accuracy
For well-known artists or works, for which
there is a great deal of data, these models can make fairly good predictions.
In some cases, Art Econometrics might
predict within a 10-15% margin of the final sale price. However, for new
artists or unique works with fewer sales histories, predictions can be much
less accurate.
Future
developments
Econometric models of Art Market
Solutions for predicting art prices are becoming
increasingly accurate. The more complex the algorithms developed with AI and
the better the historical data accessed, the more accurate these models become.
While they indeed form a very valuable source of information, they will never
replace the human component involved in art valuation.
For more information, you can visit our
website https://www.artmarketsolutions.co.uk/ or call us at 01462 612268
