This book examines the relationship between the fine arts and economics - the contribution of various art forms toward economic growth and development, and the impact of economic factors on the creation of art. The arts have a positive effect on the economic and social development of society as they create jobs, open new markets, improve the quality of life and promote social integration.

Combining an economic perspective with sociological and historic insights, this book investigates the separation of ‘popular’ and ‘serious’ art over a period of almost two centuries. As the boundaries between our perceptions of established art and popular become more porous, Abbing considers questions such as: Who benefitted from the separation? Why is exclusivity in the established arts so important? Did exclusivity lead to high cost, high subsidies and high prices? Were and are underprivileged groups excluded from art consumption and production? How did popular music become so successful in the second half of the twentieth century? Why does the art profession remain extraordinarily attractive for youngsters in spite of low incomes? The book also discusses the evolution of art in the twenty-first century, considering for example how the platform economy affects the arts, whether or not the established arts are joining the entertainment industry, and the current level of diversity in art. Written from the dual perspective of the author as an artist and social scientist, the book will be of interest for cultural economists and academics as well as artists and general readers interested in art.

This book examines the relationship between the fine arts and economics - the contribution of various art forms toward economic growth and development, and the impact of economic factors on the creation of art. The arts have a positive effect on the economic and social development of society as they create jobs, open new markets, improve the quality of life and promote social integration.

Economists historically have had very little to say about art. In the latter part of the twentieth century, however, difficult issues such as pricing and art valuation, the influence of the fashionable on pricing, and the nature of auction all began to be explored. Economic Engagements with Art suggests that taste and fashion in art need not be mysterious or outside rational discourse and that these matters can be studied by economists to the benefit of the discipline.

The book examines the contemporary art system with a broad and systematic approach, through the application of models of microeconomics and industrial organizations. By breaking down the traditional barriers between different academic disciplines such as art and economics, this book offers a unique opportunity to grasp the complexities of the contemporary art world and provides the tools to conduct a structural analysis of that market. The result is an in-depth analysis of the contemporary art market from an interdisciplinary perspective. While it is not a textbook in the strictest sense, the book offers a concise and effective overview of all actors in the art system, and provides supporting data and valuable information, both conceptual and practical. It is therefore a text that can be used by students wishing to better understand the complex dynamics that govern the contemporary art market, but also by cultural managers, collectors, potential art investors or simply art lovers who need a quick reference.​

"To explain the logic of these arrangements, the author draws on the analytical resources of industrial economics and the theory of contracts. He addresses the winner-take-all character of many creative activities that brings wealth and renown to some artists while dooming others to frustration; why the "option" form of contract is so prevalent; and why even savvy producers get sucked into making "ten-ton turkeys," such as Heaven's Gate."--BOOK JACKET.