Friedman comments in story about price-cutting in the art market

Gerald Friedman, UMass Amherst Economics Professor

Gerald Friedman, UMass Amherst economics professor, commented in a story about price-cutting in the art market.  According to the article, the art market has been effected by the current world-wide economic slump and, in response, galleries are offering more significant discounts and asking artists to lower their prices.  Friedman comments on how this price-cutting may be perceived.  “Price is a signal of quality and your commitment that this is good art,” said Friedman. “If you cut the price, it sends a signal that this is not a desirable product. If you are an investor, cutting the price is a sign that no one is going to buy it in the future.” If someone wants to buy work by a particular artist, he stated, they will pay the going rate, rather than switch to other artists.  (Huffington Post, 2/26/10)

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