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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Surviving in the marketplace
T2 - The importance of network connectivity for art dealers
AU - De Silva, D.G.
AU - Kosmopoulou, G.
AU - Pownall, R.
AU - Press, R.
PY - 2023/10/31
Y1 - 2023/10/31
N2 - This paper investigates the relationship between a dealer’s network and their ability to survive in the market using a dataset of 19th-century English art transactions. We find that dealers who purchased artworks from central sellers, and thus developed high hub centralities, survived in the market longer compared to their counterparts. This effect persists even when controlling for the quantity of works purchased, suggesting that more than just higher activity was at play. The paper builds upon previous empirical work showing that art dealers use their network connections to obtain less noisy signals about artworks’ value, resulting in a competitive edge in the market. The findings have implications beyond the art market, adding to a body of literature that suggests network connections help firms long term sustainability surviving in an uncertain marketplace.
AB - This paper investigates the relationship between a dealer’s network and their ability to survive in the market using a dataset of 19th-century English art transactions. We find that dealers who purchased artworks from central sellers, and thus developed high hub centralities, survived in the market longer compared to their counterparts. This effect persists even when controlling for the quantity of works purchased, suggesting that more than just higher activity was at play. The paper builds upon previous empirical work showing that art dealers use their network connections to obtain less noisy signals about artworks’ value, resulting in a competitive edge in the market. The findings have implications beyond the art market, adding to a body of literature that suggests network connections help firms long term sustainability surviving in an uncertain marketplace.
KW - Auctions
KW - Art dealers
KW - Trading networks
KW - Market exit
U2 - 10.1016/j.econlet.2023.111312
DO - 10.1016/j.econlet.2023.111312
M3 - Journal article
VL - 231
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
M1 - 111312
ER -