Blockchain, Fractional Ownership, and the Future of Creative Work

33 Pages Posted: 26 Feb 2020 Last revised: 21 Sep 2020

See all articles by Amy Whitaker

Amy Whitaker

New York University

Roman Kräussl

Bayes Business School (formerly Cass); Hoover Institution, Stanford University; Centre for Economic Policy Research (CEPR)

Date Written: February 11, 2019


A core challenge in studying the real return on artists’ work is the extreme difficulty accessing private records from when an artwork was first sold and thus relying on public auction data. In addition, artists do not typically receive proceeds after the initial sale. This paper, for the first time, uses archivally sourced primary market records to model returns on art and introduces a novel fractional equity structure for artists. We first model what would happen if the American artists Jasper Johns and Robert Rauschenberg had retained 10% equity in their work when it was first sold. Secondly, we model a portfolio return using data from the Betty Parsons Gallery and the Green Gallery. To add a portfolio analysis to the performance of “star” artists, we model the galleries as a fund invested in all of artworks sold, using auction sales as the realization event. We find that the individual Johns and Rauschenberg works would have vastly outperformed equities markets. The gallery portfolio still substantially outperforms the S&P, even including 20% transaction costs. Beyond the art market, our larger conceptual framework for retained fractional equity has broad implications for compensation of early-stage creative work in any field and for potential applications of blockchain technology.

Keywords: value creation and capture, art market, property rights, investment management, blockchain, venture funding

Suggested Citation

Whitaker, Amy and Kraeussl, Roman, Blockchain, Fractional Ownership, and the Future of Creative Work (February 11, 2019). Available at SSRN: or

Amy Whitaker (Contact Author)

New York University ( email )

New York, NY
United States
917-476-7399 (Phone)

Roman Kraeussl

Bayes Business School (formerly Cass) ( email )

Hoover Institution, Stanford University ( email )

Stanford, CA 94305
United States

Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics