The Art Market

A 1986 sculpture by Jeff Koons just sold for $91.1 million. Why is art so expensive? “The short answer,” Gaby Del Valle writes, “is that most art isn’t.”

The high-end art market is “driven by a small group of wealthy collectors who pay astronomical prices for works made by an even smaller group of artists, who are in turn represented by a small number of high-profile galleries.” A few newcomers break through, but first they’ve got to find a gallery to represent their work. Gallerists shop for promising new talent at MFA programs.

As Roberto Ferdman observes, “only one out of every 10 art school graduates goes on to earn his or her living as an artist. So spending, say, $120,000 on an art education is often more of an extended luxury than an investment in an adolescent’s future.” Galleries sell mostly to the ultra-rich, for whom spending a few million on a painting signals their good taste in luxury goods while also providing them with a potentially lucrative investment if the market goes up for the artist whose work they’ve acquired.

 

 

The Power of No

no
– So far this one-word tweet on @dril, dated 15 Sept 2008, has generated 55,675 retweets and 90,837 likes.

Eileen Chou summarizes her key research findings in the title of her 2018 journal article: “Naysaying and Negativity Promote Initial Power Establishment and Leadership Endorsement.” The rationale:

Humans evolved as social animals, reliant on power hierarchies to preserve order. Power is a means of influencing others through the control of rewards and punishments. Therefore it’s adaptive for humans to be attuned to cues that signal power; e.g. expansive posture, height, the tendency to spring into action. Naysaying seems to be another signifier of power. Why? For one thing, powerful people are perceived as primarily concerned with getting things done, so they focus more on identifying and correcting mistakes that hinder success than on making people feel good. Two, powerful people are regarded as less constrained by conventional norms that serve to preserve group solidarity through mutual agreeableness, in part because powerful people can reshape group norms.

Do people view naysayers as more powerful than cheerleaders? The participants in Chou’s experiments did. In the multivariate structural model derived from her empirical findings, people regard others’ negative judgments as indicative of their being free agents, able to express their true opinions unconstrained by social expectations. The free exercise of agency in turn implies the ability to wield social power over those whom they criticize. Consequently, people expect a naysayer to be a more effective leader than a cheerleader, even when the naysayer isn’t perceived as being more competent. People voluntarily follow the naysayers’ leadership, even if that means subjecting themselves to the naysayer’s negative judgment of themselves.

Chou’s experiments support the idea that people perceive naysayers as more powerful than cheerleaders. What about the naysayers themselves: do they feel more powerful? Chou conducted some additional studies in which participants were asked to invent arguments for or against some proposition about which they held no a priori opinions; e.g., positive or negative reviews for an imaginary restaurant. Afterward, the negative reviewers reported feeling more powerful than did the positive reviewers.

A positive feedback loop is activated here: Expressing a negative judgment not only makes you feel more powerful; it also causes other people to regard you as more powerful. Once you’ve been rewarded for your negativity, you’re more likely to repeat your performance, becoming a chronic naysayer and rising in the social power hierarchy.

Trump. Disagreeable workers who get higher-income and higher-status positions than their equally competent but more agreeable counterparts (Judge, Livingston, & Hurst, 2012). Publishers that reject 99% of submitted manuscripts without explanation, acknowledged as elite cultural tastemakers by the rejectees themselves…