Race and Art Prices for African American Painters and Their Contemporaries

This article investigates the extent to which economic markets have incorporated mainstream artistic acceptance of African American art. Prices of oil paintings sold at auction from 1972 to 2004 for African American artists are compared to their contemporaries. Gross means between the two groups reveal averages significantly lower for African American artists throughout the time period. Hedonic regressions, used to refine the statistical analysis by controlling for factors characterizing the painting and auction environment, also reveal that African American artists fetch lower prices. The hedonic regressions, however, reveal a narrowing gap between the two groups since price appreciation has been higher for works by African American artists. The high investment returns have made investment in paintings by African American artists a relatively profitable niche in recent years comparing well with traditional investments such as stocks and bonds. This profitability may continue since painting prices for African Americans have not completely caught up to those of contemporaries.