Who decides how much an artwork is worth? And is that price tag rational? On this episode, we’re joined by economist Don Thompson, whose latest book The Orange Balloon Dog explores the inner workings of the contemporary art market.

From Jeff Koons’s monumental sculpture that set auction records in 2013 to the upcoming sale of Leonardo da Vinci’s Salvator Mundi, we discuss how the massive sums paid for artworks are determined across auction houses, art fairs, and private deals.