The Collector's Conundrum: Balancing Booms With Busts

Inspired by Allison Zuckerman, who sold a similar piece at Christie's NYC for $212,500.00 on 11 20 21.

Source: Dalle-3 / Open AI

The fluctuating fortunes of the art market have profound psychological impacts on those involved. From the exhilaration of discovering and investing in new artists during a market boom to the anxiety and disappointment following a bust, collectors and artists ride a psychological rollercoaster. Concurrently, environmental critiques of art practices, especially depicting discarded art contributing to landfills, introduce a moral and cognitive dissonance that challenges traditional art collection and creation notions.

The Boom: Psychological Thrills of Art Collection

During the market boom, psychological factors such as novelty-seeking, status enhancement, and the pleasure of aesthetic discovery played significant roles in driving collector behavior. The influx of $712 million into the art market stimulated financial investment and ignited passions and desires for modern, innovative art. This period saw a surge in the psychological phenomenon known as the "endowment effect," where collectors attribute higher value to works simply because they own them. In this market, Allison Zuckerman’s painting entitled “Woman with her Pet” (similar to the illustration above) sold for $212,500.00 on November 20, 2021. During this period, there was a surge in the psychological phenomenon known as the "endowment effect," where collectors attribute higher value to works simply because they owned them.

The Bust: Cognitive Dissonance and Collector's Remorse

As the market corrected itself, many collectors faced cognitive dissonance—holding two conflicting beliefs about the value and sustainability of their investments. The downturn led to what can be termed "collector’s remorse," where the initial joy of acquisition turned into regret and financial concern. This market cycle phase often leads to psychological stress and reevaluating one’s motives and strategies when collecting art. During this bust, Allison Zuckerman’s “Woman with her Pet” resold, but for a tenth of its earlier price, $20,160.00. What was desirable was no longer.

Environmental Concerns: Ethical and Psychological Implications

The environmental critique posited by Art in America, which casts artworks as potential landfills, introduces another layer of psychological complexity. Collectors and artists must reconcile their roles in the production and disposal of art with their environmental values, often experiencing guilt or anxiety over the disposal of their work. This conflict extends to the broader psychological impacts of living in a society increasingly aware of environmental degradation.

The Role of Psychological Insights in Sustainable Art Practices

Understanding the psychological impacts of collecting art can inform more sustainable practices. By addressing the emotional and cognitive aspects of collecting, stakeholders can develop strategies that encourage the ethical acquisition of art and its deaccession practices, disposal, and recycling. Psychological resilience can be fostered through educational initiatives and community engagement, helping collectors navigate the emotional challenges posed by the market's volatility and environmental concerns.

Integrating Psychology with Art Market Sustainability

The assimilation of psychological insights into the art market is crucial for fostering a sustainable and ethically aware collecting culture. By examining collectors' and artists' emotional and cognitive experiences during market fluctuations and environmental crises, the art community can pave the way for more mindful and sustainable practices. This approach ensures that the joy and pride of an art collection are balanced with the responsibility of deaccessioning it in an accountable manner.

Summary

This post delves into the psychological impact of the economic boom and bust in the contemporary art market on collectors and artists. While the boom provides psychological uppers, the bust leads to emotional letdowns that can be reflected in the owner(s) wanting to disperse of the art that turned out to be a disappointment. This, in turn, can lead to ready deaccession, with some of the art potentially ending up discarded in a landfill.