Information Cascades and Abstract Art
Abstract art has been around for centuries, but its popularity boomed in the 1950s. Famous contributors to the abstraction movement include Wassily Kandinsky, Jackson Pollock, Mark Rothko, and Piet Mondrian. Their works have no clear meaning, and its interpretation is left to the viewer. The title and colors may offer some suggestions, but the abstract style is based on the idea that the work can hold a different meaning and evoke different emotions for everyone. The paintings themselves are fairly simple to replicate, as the designs require much less skill compared to art from the realism or renaissance periods. However, many of these abstract artworks are valued at millions of dollars, and have actually sold in markets at these prices.
Preston Zeller’s article argues that a reason for why abstract art is so expensive is because people, such as collectors, buy them because they have a “desire to own certain pieces because of the artist.” He states that another reason is simply for social clout amongst friends; “many times, people will know very little about the piece itself, only that the artist is famous and they want to have it.” This concept that people value their abstract art as very expensive simply because they’re done by famous artists and others say they’re valuable, with no regard to the actual style of the piece or meaning, is an example of an information cascade.
As discussed in lecture, information cascades are based on how people perceive something to be, based on information they have gathered from others’ previous actions. The previous actions may or may not be correct, yet the cascade occurs when the next person decides to abandon their own idea and adopt that of the earlier people.
“Composition with Red, Blue and Yellow” By Piet Modrian (1930)
The same idea can apply to how abstract art is valued. Let’s take Piet Modrian’s Composition with Red, Blue and Yellow, which sold for $50,565,000 in 2015. With its simple geometric lines, it’s easy to recreate by anyone experienced in art and has very little value without Modrian’s name attached to it. However, at some point, people decided that his artwork was valuable because it was seen as a response to WWI, and that its use of primary colors and basic lines was a call to the public to take a neutral stance on the war.
At first, one person, person 1, had to make this connection and proclaim it, perhaps a gallery owner who agreed to sell his pieces. Then, another person, person 2, can see the piece and appreciate it and decide to buy it for a small amount. Then, maybe person 2 decides to sell the piece to person 3 at a higher price. Person 3 assumes the painting has some value, since it used to be in a gallery and was sold for a certain price and purchases it. A person 4, can see it and assume that the piece is very expensive since it’s gone through 3 owners and the price it sold for has increased. Eventually, after many persons seeing Modrian’s work, there is a cascade, as all subsequent people deem the abstract piece as very valuable, given that a few people initially valued it as such. They base their judgment of the value on that of the previous people, even if they personally believe the art shouldn’t be worth much because it’s simple and requires low skills or talent.
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Sources referenced:
https://zellerhausart.com/blog/why-do-people-buy-art
https://www.piet-mondrian.com/composition-with-red-yellow-and-blue/