Copyrights to papers in the Duke Economics Working Paper Archive remain with the authors or their assignees. Archive users may download papers and produce them for their own personal use, but downloading of papers for any other activity, including reposting to other electronic bulletin boards or archives, may not be done without the written consent of the authors.

Duke Economics Working Paper #97-20

Dealer-Dealer Pricing in the 17th Century Antwerp-Paris Art Trade


Neil De Marchi, Hans J. Van Miegroet
and
Matthew E. Raiff

Abstract

The paper explores the evolution of pricing arrangements agreed between two art dealers, one in Paris, the other in Antwerp, in the period 1650 to 1665. These two dealt mainly in made-to-order works. They were principal (Antwerp) and agent (Paris). The principal posted prices, a common arrangement for commodities which involve high up-front costs and small sales volume, and where specialized information is an important part of securing clients and sales. To test an agent's commitment, however, a different arrangement is needed. The historical sequence was posted prices; an episode to test commitment; then posted prices once again, but with sale-or-return. The evolution can be rationalised as the discovery of ways to improve flexibility and reduce information, negotiation and monitoring costs. The historical significance of the relationship itself, however, is that it enabled the Paris dealer to negotiate successfully adaptations of Antwerp visual culture to Parisian tastes, thereby sustaining an export trade which might otherwise have collapsed.

Retrieve document:

32 pages

Note: Additional diagrams for this paper may be found in the Diagram Index

  Help on downloading documents