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Do Artists Benefit from Resale Royalties? An Economic Analysis of a New EU Directive

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  • Kirstein, Roland
  • Schmidtchen, Dieter

Abstract

According to a new European Union directive, artists, whose works are resold, are entitled to a share of the sales price. The principal aim of this initiative is to let the artists participate in the economic success of their work. Our analysis shows that the new directive is most likely to place the artists in a worse economic position. The analysis of the relation between the artist and his dealer as an incentive compatible contract leads to further objections against the new EU directive. However, the paper also illustrates under which conditions a resale royalty is, at least, an incentive compatible contract.

Suggested Citation

  • Kirstein, Roland & Schmidtchen, Dieter, 2000. "Do Artists Benefit from Resale Royalties? An Economic Analysis of a New EU Directive," CSLE Discussion Paper Series 2000-07, Saarland University, CSLE - Center for the Study of Law and Economics.
    • Handle: RePEc:zbw:csledp:200007
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    File URL: https://www.econstor.eu/bitstream/10419/23109/1/2000-07_dds4.pdf
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    References listed on IDEAS

    as
    1. Schmidtchen, Dieter & Koboldt, Christian & Kirstein, Roland, 1997. "Rechtsvereinheitlichung beim "droit de suite"? Ökonomische Analyse des Richtlinienentwurfs der Europäischen Kommission," CSLE Discussion Paper Series 97-02, Saarland University, CSLE - Center for the Study of Law and Economics.
    2. Coase, Ronald H, 1972. "Durability and Monopoly," Journal of Law and Economics, University of Chicago Press, vol. 15(1), pages 143-149, April.
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    Cited by:

    1. Schmidtchen, Dieter, 2007. "Vereinheitlichung des Vertragsrechts in Europa - eine Lösung auf der Suche nach dem Problem? Die Sicht der Neuen Institutionenökonomik," CSLE Discussion Paper Series 2007-01, Saarland University, CSLE - Center for the Study of Law and Economics.
    2. Roland Kirstein, 2006. "Blair, R. D., and Cotter, T. F.: Intellectual Property: Economic and Legal Dimensions of Rights and Remedies," Journal of Economics, Springer, vol. 89(1), pages 90-93, October.

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    More about this item

    Keywords

    resale rights; droit de suite; Screening Skill; strategic complements;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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