Page:2020-07-29 PSI Staff Report - The Art Industry and U.S. Policies that Undermine Sanctions.pdf/51

 through private sales. In 2019, aggregate dealer sales accounted for 58 percent of the art market by value, in contrast with auction sales, which claimed only 42 percent. In private sales, art dealers serve as a liaison between artists or current owners and potential purchasers. In this role, and in exchange for a percentage of each artwork sold, dealers often "manage an artist's sales, network with collectors and curators, and seek to ensure the longevity of an artist's career by mounting exhibitions" on behalf of their artists.

Traditionally, art dealers conduct private sales through art galleries. In 2019 for example, 50 percent of dealer sales were made in galleries; the remaining 50 percent were divided between art fairs (45 percent) and online purchases (5 percent). Galleries represent artists through promotional activities, hosting exhibitions, and ultimately selling their work. Primary market dealers sell works by living artists while secondary-market dealers re-sell works "on behalf of collectors, institutions, and estates." Because auction houses tend to focus on the secondary market, galleries execute many first-time sales and as a result play an influential role in determining the value of individual pieces.

Nevertheless, the historical dominance of art galleries has declined with the increasing popularity of art fairs. Unlike the traditional gallery, which operates from a fixed location, art fairs allow for collaboration between dealers and gallery owners who come together for a limited time to show a wide range of pieces at different price points. Art fairs provide valuable networking opportunities, increased exposure for artists, and a bolstered image for host cities, which benefit