Impact of Covid-19 Pandemic on the Contemporary Fine Art Market : Remote/online bidding and economic recession

Abstract

The Covid-19 Pandemic has drastically (and negatively) affected most markets, the contemporary fine-art market however seemingly continues on the rise breaking auction-sale records throughout the last 18 months. This study aimed to understand this anomaly and grasp the basis of these high results for contemporary art sales in the two leading auction houses; Sotheby’s and Christie’s, as well as analyze the conditions and future of the market. Research in this study is driven by a qualitative and quantitative research strategy subject to interpretivism and constructionism, which has been based on art market and auction theory; notably Professors Paul R. Milgrom and Robert B. Wilsons Nobel Prize-winning work. Eight influential professionals and collectors of the contemporary art world have been interviewed for this study. This qualitative research follows an abductive approach which has allowed us to continuously move back and forth between the theories and the empirical data emerging from the findings of the research. We have reached several conclusions: (1) the lack of mobility due to the pandemic has not heavily affected contemporary collectors’ hunger and interest in collecting contemporary art, (2) the pandemic has made it hard on regular contemporary artists but kept sales of pieces by renown artists high, (which are the ones sold at Sotheby’s and Christie’s) (3) auction houses have decided to keep most great pieces from online auctioning – consulting cosigners of extremely valuable works to wait until regular auctioning returns-, offering only a fewer high-value lots per sale has guaranteed a high price (or even record-breaking sale) headline to ensure the public of their (and the market’s) stability in this time of global crisis and, finally, (4) that the contemporary auctioning market will continue to be stable during future years, due to the immense number of collectors and the efforts made by the whole market during this trying time.