The role of technology in the art market in the COVID-19 period

Abstract

The art market, like many other industries, has experienced a challenging and transformative period since early 2020 as the COVID-19 pandemic has created new unforeseen needs for galleries and auction houses. Along with the challenges it presented, the crisis has also created many opportunities for restructuring and innovation in the industry as organizations have been forced to look for new ways of working because the traditional format has become unacceptable, and this has required new methods and technologies. The market, driven by external circumstances, moved online as businesses closed and events were canceled, and dealers were forced to rethink their business models to adapt to the new economic realities, which, for many, involved the deployment or significant intensification of digital strategies in to support sales and communications. Therefore, the purpose of the study is to determine the impact of innovative technologies on the world’s largest auction houses. To better understand the impact of innovative technologies on the financial performance of the auction houses Christie’s, Sotheby’s and Phillips, econometric models were built to identify the presence or absence of a relationship between auction profits and such a qualitative factor as the format of the auctions. Based on the econometric analysis, it can be concluded that in the period 2019-2021, the importance of online auctions and, as a result, other technologies necessary to support their activities has increased. This growth is due to factors such as the forced transition to an online format due to security measures and the fight against COVID-19 and an increasing level of confidence on the part of market participants.