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Art Dealers’ Inventory Strategy The case of Goupil, Boussod & Valadon from 1860 to 1914

Author

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  • Oosterlinck, Kim
  • David, Géraldine
  • Huemer, Christian
Abstract
Proper inventory management is crucial for art galleries since the art market is highly illiquid, subject to periodic changes in tastes and that inventory represents one of the main costs of galleries. Yet, despite its importance, inventory management has been overlooked in the literature. This paper distinguishes four main strategies used by art dealers to manage their inventory: relying on commissions, on consignments, on speed of sale or on large inventories. We use this classification to set the inventory strategy of Goupil, Boussod & Valadon, a major art gallery active in France at the end of the 19th century, into perspective. Goupil’s books cover the sale of more than 25,000 artworks between 1860 and 1914. Rapidity to sell was a key element in Goupil’s strategy. Out of the sold artworks, almost 75% were sold within a year. Artworks which had been in inventory for a long time sold at a discount. Goupil required a slightly higher mark-up for artists from which he held a large inventory. Mark-up for artists in residence were lower, suggesting Goupil was ready to make a discount to establish their market. The likelihood to sell their artworks at a loss was also lower, signaling a preoccupation for their long-term market.

Suggested Citation

  • Oosterlinck, Kim & David, Géraldine & Huemer, Christian, 2019. "Art Dealers’ Inventory Strategy The case of Goupil, Boussod & Valadon from 1860 to 1914," CEPR Discussion Papers 13941, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13941
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    References listed on IDEAS

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    2. David Chambers & Elroy Dimson & Christophe Spaenjers, 0. "Art as an Asset: Evidence from Keynes the Collector," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(3), pages 490-520.

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    More about this item

    Keywords

    Art market; Art investment; Art gallery; French economic history;
    All these keywords.

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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