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Competition and the Non-Profit Arts: The Lost Industrial Organization Agenda

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  • Bruce Seaman

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Abstract

The recent industrial organization focus on transaction costs and vertical contracting within the cultural industries (Caves, R.E. 2000, Creative Industries: Contracts between Arts and Commerce. Harvard University Press, Cambridge) stands in contrast to the near abandonment of an earlier literature on horizontal firm interaction and competitive conditions within the performing arts (e.g., Throsby, C.D. and Withers, G.A. 1979, The Economics of the Performing Arts. Edward Arnold, London.; Gapinski, J.H. 1986, J.H. American Economic Review 76(2): 20–25). That incomplete but promising agenda was overwhelmed by the emphasis on non-profit arts firms acting as near natural monopolies, as reflected by Throsby himself (Throsby, D., 1994, Journal of Economic Literature 32: 1–29) and Blaug's survey (Blaug, M., 2001, Journal of Economic Surveys 15: 123–143). This paper resuscitates these earlier inter-firm hypotheses, identifies surprising contrasts with Caves' less frequent horizontal observations, and encourages a revival of interest in studying the effects of competition in the non-profit arts. Copyright Kluwer Academic Publishers 2004

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Bibliographic Info

Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 28 (2004)
Issue (Month): 3 (August)
Pages: 167-193

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Handle: RePEc:kap:jculte:v:28:y:2004:i:3:p:167-193

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Web page: http://www.springerlink.com/link.asp?id=100284

Related research

Keywords: antitrust; competition; natural monopoly; oligopoly; product differentiation;

References

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  1. Alexander, Peter J., 1997. "Product variety and market structure: A new measure and a simple test," Journal of Economic Behavior & Organization, Elsevier, vol. 32(2), pages 207-214, February.
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Cited by:
  1. Traub, Stefan, 2005. "Quality Investment and Price Formation in the Performing Arts Sector: A Spatial Analysis," Economics Working Papers 2005,16, Christian-Albrechts-University of Kiel, Department of Economics.
  2. Seaman, Bruce A., 2009. "Cultural Economics: The State of the Art and Perspectives/Economía de la cultura: estado del arte y perspectivas," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 7-32, Abril.

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