Think of art markets, and art collecting, as an ongoing debate over what is beautiful and also what is culturally important. But unlike most debates, you have a very direct chance to “put your money where your mouth is,” namely by buying art (it is very difficult to sell art short, however). In this regard, debates over artistic value may be among the most efficient debates in the world. At least if you are persuaded by the basic virtues of prediction markets. The prices of various art works really do aggregate information about their perceived values.
I have, however, noted a correlation, how necessary or contingent I am not sure. The “white male nerd types” who are enamored of prediction markets tend to be especially skeptical of the market judgments of particular art works, most of all for conceptual and contemporary art.
In my view, discussions about the value of art, as they occur in the off-the-record, proprietary sphere, are indeed of high value and they deserve to be studied more closely. Imagine a bunch of people competing to make “objects that are interesting but not interesting for reasons related to their practical value.” And then we debate who has succeeded, or not. And those debates reflect many broader social, political, and economic issues. And it is all done with very real money on the line. The money concerns not just the value of individual art works, but also the prestige and social capital value that arises from having assembled a prestigious and insightful collection.