1.3 The reputations of some of the world’s most prestigious museums have been damaged by accusations that they obtained antiquities that were looted or stolen in violation of international laws and treaties aimed at halting illicit trade in art and antiquities.

A new wariness among private and public collectors to buy works whose provenance has not been rigorously established threatens the business of even established dealers. Conversely, this fear has increased the value of antiquities that have a solid ownership history. Many of the world’s most powerful dealers of antiquities, such as the Aboutaam brothers, backed an international ban on trade in excavated antiquities (Ron Stodghill,

“Do You Know Where That Art Has Been?” New York Times, March 18, 2007; Daniel Grant, “Is It Possible to ‘Collect’ Antiquities These Days?”

Huffington Post, April 5, 2011).

a. What would be the effect of the ban on the current stock of antiquities for sale in the United States and Europe?

b. Why would established dealers back such a ban?

c. Would such a ban differentially affect established dealers and new dealers?

d. Discuss the implications of a ban using the concept of an economic rent.