There is no Bubble like an Art Bubble

Stating that the market for art is not just any market is like forcing an open door. Features such as pricing mechanisms and the relation between supply and demand differ substantially from other markets, including the financial markets. Nevertheless, the emergence of ‘bubbles’ which is a reoccurring phenomenon in financial markets – think for example about the 1980s Nikkei bubble – also happens in the market for art, although the features do differ. In this master thesis, research has been conducted on the concept of bubbles in the market for art, and the several features which have an impact on its development. Based on the market-specific characteristics, its relation to the economy in general, and the chronological overview of socio-economic developments, we have sketched a picture of an art market in flux over the period 1910-2010.