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Nonprofit Enterprise in the Performing Arts

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  • Henry Hansmann
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    Abstract

    This article explores the reasons for the current dominance of the nonprofit form in the high-culture performing arts, and concludes that this development is a response to the need for price discrimination in that sector. The article develops a model of a nonprofit performing arts organization based on this analysis, and employs the model to explore, first, the consequences to be expected if such an organization adopts any of the various plausible objective functions, and second, the circumstances in which subsidies to such an organization are justified and the way in which such subsidies should be structured.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 12 (1981)
    Issue (Month): 2 (Autumn)
    Pages: 341-361

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    Handle: RePEc:rje:bellje:v:12:y:1981:i:autumn:p:341-361

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    Cited by:
    1. Scharf, Kimberley, 2011. "Scale Scale Economies in Nonprofit Provision, Technology Adoption and Entry," CAGE Online Working Paper Series 45, Competitive Advantage in the Global Economy (CAGE).
    2. Paul DiMaggio, 2003. "Nonprofit Organizations and the Intersectoral Division of Labor in the Arts," Working Papers 37, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Arts and Cultural Policy Studies..
    3. Frey, Bruno S. & Meier, Stephan, 2006. "The Economics of Museums," Handbook of the Economics of Art and Culture, Elsevier.
    4. Bouckaert J. & De Borger B., 2010. "Price competition between subsidized organizations," Working Papers 2010019, University of Antwerp, Faculty of Applied Economics.
    5. Scharf, Kimberley, 2013. "Impure Prosocial Motivation in Charity Provision: Warm-Glow Charities and Implications for Public Funding," CEPR Discussion Papers 9749, C.E.P.R. Discussion Papers.
    6. Swati Mukerjee & Ann Witte, 1993. "Provision of child care: Cost functions for profit-making and not-for-profit day care centers," Journal of Productivity Analysis, Springer, vol. 4(1), pages 145-163, June.
    7. Julia Hiscock & David E. Hojman, 2004. "Where Have All the Flowers Gone? Coase Theorem Failures in English Summer Cultural Events: The Case of Sidmouth International Festival," Research Papers 200406, University of Liverpool Management School.
    8. Bruno Frey, 1999. "State Support and Creativity in the Arts: Some New Considerations," Journal of Cultural Economics, Springer, vol. 23(1), pages 71-85, March.
    9. Richard O. Beil & David N. Laband, 1996. "The American Economic Association Dues Structure," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 179-186, Fall.
    10. Jody Lipford, 1992. "Organizational reputation and constitutional constraints: An application to religious denominations," Constitutional Political Economy, Springer, vol. 3(3), pages 343-357, September.

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