Advanced economics and management of arts
Prof. Elena Stepanova; Prof. Alessia Zorloni
I Modulo: Advanced Economics of the Arts (Prof. Elena Stepanova)
COURSE AIMS
This course provides basic foundations for economic analysis of art market and the market of performing arts. Students will be introduced to general economic models and their application for markets of cultural goods. They will gain understanding of specific characteristics of cultural goods and will be able to apply economic models to describe behavior of agents in the cultural industry.
COURSE CONTENT
Course consists of three parts:
–market as a mechanism for resources allocation: demand, supply (value and cost of production), equilibrium and pricing mechanism under different market structures, asymmetric information and signaling.
–market failures and an introduction to welfare economics: market power, externalities, public goods, market interventions, cultural policies and their efficiency.
–labour market in the cultural industry: demand and supply of labour, artists and creators supply behavior, dilemma of performing arts.
READING LIST
Main
1.Ruth Towse (2010), A Textbook of Cultural Economics.
2.P. Krugman-R. Weills (2012), Principles of Economics.
Additional
M. Blaug (2001), Where are we now on cultural economics?, Journal of Economic Surveys 15, 123-144.
Ruth Towse (2011), A Handbook of Cultural Economics.
Ruth Towse (2014), Advanced Introduction to Cultural Economics.
Ruth Towse, Prof. Dr. Abdul Khakee (eds.) (1992) Cultural Economics.
TEACHING METHOD
50% of course hours are Font lectures and 25 % are exercises sessions. Exercise sessions will include real empirical examples and will require ability to perform statistical estimations and work with statistical software (brief introduction to R-software will be given during one of the sessions) . 25% are class presentations of group and individual projects
II Modulo:Visual art management (Prof. Alessia Zorloni)
COURSE AIMS
The goal of this course is to present the visual art system from an interdisciplinary perspective by analyzing the behavior of its main players, both on the demand (visitors, collectors, museums, corporate) and on the supply side (artists, art dealers, auction houses and fairs). The conceptual and analytical framework is the modern theory of the firm and industrial organization. Students will gain insight into the current state of both the primary and secondary markets while learning about the major players and how they interact, including museums, galleries, dealers, auction houses, private collectors, art advisors and curators.
COURSE CONTENT
This course offers students a unique opportunity to grasp the complexities of the international art world and its markets and provides the tools to conduct an art market analysis. The course programme is organised into four different content areas using a multiple-level perspective. Specifically, the four different content areas are:
1.The system of contemporary art. This module familiarizes students with the global visual art industry, its markets, its size, its actors, how they interact and the market mechanism.
2.Public and private collecting. This module will introduce students to the complexities of the international art market, providing various approaches and strategies to collecting. A particular focus will be placed on the importance of private museums and corporate collections.
3.Management and strategy. This module explores the economic context of the art business. Topics covered range from the nature, function, and structure of museums, to the concepts, procedures, and tools necessary for producing and managing exhibition projects in museums, cultural centers and galleries. Students will gain exposure to a variety of topics in the visual art arena, discussing issues such as working with artists, setting prices, working with art fairs and biennials, defining exhibition budgets or assessing museum performance.
4.Case study. This module is very practical-oriented. Students will team up and be introduced to a business project in the art world, working in a similar manner to an art advisory service.
READING LIST
Main
A. Zorloni, The Economics of Contemporary Art. Markets, Strategies and Stardom, Springer, Heidelberg, 2013.
A. Zorloni, Art Wealth Management. Managing Private Art Collections, Springer, Heidelberg, 2016.
Readings, lecture notes and additional instructional material will be made available on the Blackboard platform to facilitate a greater understanding of the theme studies.
TEACHING METHOD
The course is based on a dynamic approach that alternates between front lessons, practical training sessions, case studies, site visits, testimonials with experts and practitioners and class presentations.
Regular class attendance is highly recommended.
ASSESSMENT METHOD
For attending students:
The final grade is based on a group project and written exam. Written exam will be on the arguments covered in class with the instructors. The final grade for attending students is composed as follows:
–Group assignment: 30%.
–Written exam: 70%.
Students not attending class on a regular basis:
The final grade will be based on an written exam covering the entire textbooks.