CULTURAL INSTITUTIONS AND VALUE FORMATION ON THE ART-MARKET - A RENT-SEEKING APPROACH

The formation of value in the artistic market can be specifically affe cted by the behavior of cultural institutions, acting on it as monopol istic quality certifiers. The rent-maximizing strategy limits quantiti es to sub-optimum levels and keeps prices and costs higher. This can b e worsened by institutional rent-seeking. The establishment's strategi es cannot always be matched through public policies, because this can result in an increase of monopoly social losses and of the establishme nt's lobbying efforts.