Visual Artists' Resale Royalty: An Application of the Principal and Agent Model

7 Pages Posted: 3 Feb 2009  

Maryam Dilmaghani

Saint Mary's University, Sobey School of Business, Department of Economics

Date Written: December 20, 2008

Abstract

The visual artist's resale royalty right entitles an artist to a percentage of the price received by subsequent owners when her works are resold. Adopted by the integrity of EU countries in 2006, the question of the Federal recognition of this right in the US is currently discussed. Economic analysis of this right mostly concluded its inefficiency. In this paper we examine the issue from the stand point of incentives provided by each legal framework, with and without this right, for the artists. We argue that an optimal mechanism designed to implement a maximum level artistic effort in the society coincides with the adoption of this right.

Keywords: Resale royalty, principal agent

Suggested Citation

Dilmaghani, Maryam, Visual Artists' Resale Royalty: An Application of the Principal and Agent Model (December 20, 2008). Review of Economic Research on Copyright Issues, Vol. 5, No. 2, pp. 37-43, 2008. Available at SSRN: https://ssrn.com/abstract=1336790

Maryam Dilmaghani (Contact Author)

Saint Mary's University, Sobey School of Business, Department of Economics ( email )

923 Robie Street
Halifax, Nova Scotia B3H 3C3
Canada

HOME PAGE: http://www.neuropsyconomics.com/

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