ABSTRACT
As the quantitative economists 1 have become less smug and less prejudiced, the economics of the arts, which has experienced escalating popularity since the 1970s, has been fully integrated into general economics and into a new discipline known as the economics of knowledge. This is because the economics of the arts hinges on a vitally important issue—that of the difference between production and use of art. Economists have ingenuously sought to apply their own systems of classification to the notion of production. The concept of use was first addressed by financial scientists, who deemed that, since art is a form of knowledge, and therefore a merit good, its acquisition with public funds was perfectly justified. Contemporary visual art will be the exclusive object of our study because it possesses visible signs of rupture with art in general that have been ignored by the traditional economic approach. In particular, we shall examine the public demand for contemporary art and answer the following question: “What are the criteria used to determine the value of contemporary art with the purpose of allocating public funds?” It should be remembered that while public museums acquire works of art that have been produced, their mission is to ensure that the works can be used by the viewer-taxpayer.
