Understanding Trends in the Art Market

Course Outline
Online

Instructor: J eremy Eckstein is a statistician by training and started his working life as a fund manager. In 1979, he
joined Sotheby's Auction House as Head of Research, where he was responsible for developing a range of statistical,
economic and financial tools for use by investors and other art market professionals with particular responsibility for
monitoring the performance of the British Railways Pension Fund's fine art investment portfolio. He was appointed
Deputy Director in 1987, with overall responsibility for international research. In 1990, Mr. Eckstein began to work as
an independent consultant in the art market. He has undertaken a broad range of commissioned research, carrying
out surveys for the art trade and producing a variety of statistics and economic analyses, including a major survey for
TEFAF Maastricht on the economic impact of art fairs.

Topics covered:

Basic Statistics for the Art Market
Difference between descriptive, inferential and predictive statistics
Mean, median, mode thinking about averages and how they can be used to describe art prices
Correlation and regression quantifying the pricing structure of works of art
Scatter charts visualizing the distribution of art prices

Basic Economics for the Art Market
Staple goods, luxury goods and the economic theory underlying the pricing of luxury goods
What signaling theory and behavioral finance can add to our understanding of art market prices

Long-Term Trends in Art Market Prices The Shifting Pattern of Global Wealth; Emerging Markets
How and why certain sectors of the art market experience very different trends in prices
What happens when some types of art get too expensive?
Changing global wealth patterns and the socio-demographic profile of art buyers

Inflation and Currency and Exchange Rates in a Global Marketplace
Measuring inflation and why it is important to the art market
The impact of fluctuating exchange rates in a global marketplace and implications for business strategies

Pricing Art
How art prices are determined
Applying hedonic and other economic price modeling in the art market
Indicative pricing
The difference between value and price in the art market

Auction Houses: Estimates & Prices
How auctions work and how auction houses set estimates for prices
How and why the realized price may be a weak indication of true value
Other open market methods for setting prices

What students have to say about this course:
- Mr. Ecksteins presentations were great, clear and informative, and he provided great feedback.

-I really enjoyed this course and looked forward every day to logging on and reading my classmates and
instructors posts.

-The teacher took time to answer everyones questions, gave each and everyone personalized attention
and helped in keeping the discussions alive.

For more information: http://www.sothebysinstitute.com/Programmes/POnlineCourses.aspx