Navigating the Art Market: Insights from George Dickie’s Institutional Theory for Art Collectors

The art market is a complex, ever-evolving space where understanding the roles of institutions and systems can give collectors a crucial edge. George Dickie’s institutional theory of art offers a valuable framework to comprehend how art is defined and valued, shedding light on how art institutions and the art world shape perceptions of what constitutes art. Drawing from Hans van Maanen’s How to Study Art Worlds: On the Societal Functioning of Aesthetic Values (2009), this article explores practical strategies for art collectors rooted in Dickie’s institutional theory.

What is the Institutional Theory of Art?

George Dickie’s institutional theory, developed in the mid-20th century, moves away from traditional definitions of art based on aesthetics, focusing instead on the role that institutions—such as galleries, museums, and critics—play in designating objects as art. Unlike Monroe Beardsley, who emphasized art's capacity to create aesthetic experiences, Dickie argues that the designation of something as "art" is conferred by the collective agreement of an art world system.

For art collectors, this theory highlights the importance of understanding not only the intrinsic qualities of an artwork but also its relationship to the broader institutional framework. Art becomes art when it is recognized as such by institutions within the art world. This concept is central to navigating the art market successfully.

Why Institutional Endorsement Matters for Art Collectors

One of the primary insights from Dickie’s institutional theory is the significance of institutional endorsement. Art’s value is often tied to the institutions that validate it, including galleries, museums, and auction houses. For art collectors, understanding which institutions support an artist or artwork can offer insight into its potential long-term value.

For example, artworks exhibited in major museums or handled by well-known galleries tend to hold greater prestige. This institutional backing often drives up both the perceived value and market demand for an artist’s work. Collectors should closely follow the trajectory of institutional support when investing in art, as it plays a significant role in how art is valued both culturally and financially.

Understanding the Art World as a System

In Dickie’s institutional theory, the “art world” is a system of interrelated institutions and individuals that shape how art is produced, presented, and valued. This system includes artists, curators, dealers, collectors, critics, and audiences. For collectors, knowing how these players interact can offer insights into which artworks are likely to gain recognition and value over time.

Collecting art is not just about selecting pieces based on personal taste or aesthetic appeal; it requires an understanding of the broader system that assigns value to artworks. Art collectors who engage with galleries, curators, and critics gain access to the institutional framework that validates and promotes art.

The Role of Context and Historical Significance in Art Valuation

Another critical aspect of Dickie’s theory is the importance of context and historical significance in defining what is considered art. Arthur Danto, a contemporary of Dickie, emphasized that art must exist within a particular historical or cultural context to be understood as art. Artworks that are part of significant movements or that engage with contemporary issues tend to attract more attention from the art world.

For collectors, this means paying attention to the narratives that surround an artwork. Works that resonate with current cultural discussions or that are part of broader art movements are often more likely to appreciate in value. For example, pop art, minimalism, and conceptual art have gained recognition and market value precisely because they reflect and engage with the art world’s evolving historical narrative.

Practical Tips for Art Collectors Based on Institutional Theory

Here are some practical strategies for art collectors, drawn from Dickie’s institutional theory:

1. Invest in Artists with Institutional Support

Collectors should track which artists are gaining institutional backing from galleries, museums, and critics. Institutional support often predicts an artist’s staying power and long-term value in the market.

2. Pay Attention to Art Movements and Trends

Works tied to recognized art movements or emerging trends tend to gain more visibility and institutional attention. Collectors should research art historical contexts and contemporary movements that influence the current art world.

3. Understand the Role of Art Dealers and Critics

Dealers and critics play a pivotal role in shaping the reputation of artists and artworks. Building relationships with these key players can give collectors access to insider knowledge on upcoming trends and undervalued artists.

4. Follow the Art Market’s Conventions

The art world operates on a system of conventions, from the way art is exhibited to the language used to describe it. Familiarizing oneself with these conventions can help collectors make more informed decisions about their acquisitions.

5. Engage with Art as a Social Construct

Art is a social construct shaped by the institutions and individuals who define it. Collectors who understand this dynamic can better anticipate how an artwork might gain or lose cultural significance over time.

The Circular Nature of Art and Its Implications for Collectors

One critique of Dickie’s institutional theory is its circular nature: art is defined by the art world, but the art world is defined by the art it presents. While this may seem paradoxical, it reflects the reality of how art is valued. The art world creates and maintains the conventions that shape how art is understood, while simultaneously using those conventions to validate what it calls art.

For collectors, this circularity underscores the importance of understanding the art world as a dynamic, self-reinforcing system. Art is not just about what looks good or feels meaningful on a personal level; it is about how works fit into an institutional framework that shapes and defines their meaning. Collectors who grasp this system will be better equipped to make informed decisions.

Conclusion

In summary, George Dickie’s institutional theory provides valuable insights for art collectors by highlighting the role of institutions, the importance of context, and the conventions that shape the art world. For collectors, understanding these dynamics can help navigate the complexities of the art market, identify valuable artworks, and make more strategic investment decisions.

By paying attention to institutional endorsement, understanding the art world as a system, and recognizing the cultural context that defines art, collectors can enhance both the cultural and financial value of their collections.

References

Van Maanen, Hans. How to Study Art Worlds: On the Societal Functioning of Aesthetic Values. Amsterdam University Press, 2009.