ABSTRACT
Droit de Suite has emerged as a topic of consideration in several countries. This study defines artworks as alternative investments to analyze the flow of transactions in art market over n periods. Under certainty, where the seller has price-setting power, the Droit de Suite does not affect the artist’s profit or social welfare. However, in the presence of uncertainty and if the artist is risk-averse, the Droit de Suite reduces the visual artist’s expected utility. Therefore, contrary to its intended purpose, the Droit de Suite does not positively impact visual artists, making it difficult to support its effectiveness.
천, 지영 and Seo, Youngdoc, Who Benefits from Droit De Suite?. Posted to SSRN 1 October 2024.
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