On the subject of wealthy people and their art, I have about a year of first-hand experience installing it in places like Beverly Hills, Bel Air, Malibu, and Marina Del Rey. A number of our clients were the kind of people who will spend 3-4 million dollars on a house remodel. Or a boat.
One pretty common trait was that they tended to be pretty frugal. Not necessarily cheap, but they paid attention to their spending and tried to watch where their money went. Most of them were very nice to work for, but the way they perceived art varied a lot from client to client.
Some of our clients could be considered collectors. They wouldn't bat an eye at spending five or six figure amounts on a piece of art. (One of our clients didn't hesitate to spend over $9000 just to put a new, narrower frame on a large piece because it wouldn't fit in the elevator of her new condo, which prevented us from getting it upstairs to install it. Add to that our installation, moving and storage charges, and she spent nearly $14,000 just to move that piece from the old condo to the new one. She wasn't real happy about it, but she made the decision to do it in about 5 minutes. She really wanted to keep that piece.) But typically, this type of folks buy work by known artists, so in a lot of cases the artwork is seen as an investment as much as something pretty for the walls. This group might balk at a $360 piece from Penny's but not hesitate to spend thousands on a Georgia O'Keefe painting. (And pay us $360 to hang it.) When they
did buy something from an unknown artist, sometimes it was just because they liked it, but sometimes it was just because the artists had the confidence and chutzpah to market their work - and themselves - at that rarefied level. Some art buyers are willing to spend money on work done by unknowns, if they think the artist will eventually be famous. They care more about the maker than the product. And as has been said earlier in this thread, there are cases when they won't buy if something is priced too low. Part of that is because they perceive the piece to be a lesser value, but part of it is because they can't brag about it to their friends. There's a fair amount of one-upmanship that goes on among that demographic, and high prices are bragged about more than bargains.
Then there was the other side of the coin. We saw a good number of very wealthy clients who buy artwork simply as a decoration. They have no problem owning and displaying stuff from craft shows and places like Pottery Barn. Names meant little to nothing. The art collection was just for decoration, not investment. Price - low or high - didn't really matter as long as they liked it. Some of it was what most of us here would consider pricey - a few hundred to a few thousand bucks - but they would be just as likely to buy something off the bargain rack at Pic and Save. (And then pay us a couple hundred bucks an hour to hang it, lol.) One of our most wealthy clients had dozens of family photos lining a hallway, and they were all framed in assorted old wooden frames she'd found at thrift stores and antique shops. That house was impeccably decorated, and it also had some higher-end artwork, but I could easily see this lady buying a wood block wall hanging at Penney's if she liked it.
Of course we also had clients who weren't as wealthy, but it seemed that regardless of the economic level, it was still a mix of the "collectors" and the "decorators".