Evaluation Factors and Pricing Stochastic Model of Contemporary Art

Abstract

Contemporary art is the artwork created by currently active artists. As a result, it reflects the many complexities that shape our varied, global, and continuously changing world. Many modern artists use their work to investigate personal or cultural identity, criticize societal and institutional frameworks, or even redefine art itself. The current chaotic phenomena of art market prices has an impact on the development of art, particularly substantial price fluctuations, resulting in a number of problems that are preventing the art market from developing. The aim of this paper is to get a greater understanding of art, as well as a novel approach of evaluating art and a mathematical stochastic model for estimating its price. This paper investigates the pricing method and model by looking at the cultural basis of art, modelling, decoration, market supply and demand, product practicability, and random elements, among other things, in order to help the art market flourish and allow artists to consume. The model test results clearly demonstrate the rationality of the indicator selection, indicating that the pricing model is well designed.