Economics of Art: with special reference to the factors determining painting prices.

This paper studies the subjective factors which govern the price of super luxurious economic goods such as decorative paintings produced by the artists in the society. The main objective of the price theory in micro economics is to examine how price is determined for regularly consumed commodities under various market conditions like Perfect Competition, Monopoly Market, Monopolistic Competitions. Though, price is quantifiable variable, but it's highly influenced by visible and invisible (Psychological) forces in the any economy. The visible forces which determine the price of any commodity are the cost of factors of production and psychological factors like taste, habits, behavior, emotions, feelings, brands, fame, personal attachments, mood etc also have profound impact on pricing policy. Psychological Factors such as name and fame of the artists, properties of the painting such as aesthetic, creativity, feelings in the paintings, consumer's extra satisfaction, investors have high Marginal Efficiency of Capital (MEC), buyers taste for luxurious goods, desire to buy and the theme and concepts in the paintings. And Non-Psychological factors like life span of the artists, size of the canvas, medium like oil or acrylic colours, region in which artists is born and painting is made. buyers ability to pay, the market in which paintings are sold-online or off line market, technique and style used in making paintings, artists experience in the field of art, the time used in making a painting and materials used i.e. factors of production have impact on the price of paintings.