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Nonprofit Enterprise in the Performing Arts

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Author Info
Henry Hansmann
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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Publisher 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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  1. 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. [Downloadable!]
  2. Luciano PILOTTI, 2004. "Culture & arts as knowledge resources towards sustainability for identity of nations and cognitive richness of human being," Departemental Working Papers 2004-11, Department of Economics University of Milan Italy. [Downloadable!]
  3. Bernard Enjolras, 2004. "Individual action, institutions and social change : an approach in terms of convention," Cahiers de la Maison des Sciences Economiques r04052, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
  4. Arthur Brooks & Jan Ondrich, 2007. "Quality, service level, or empire: which is the objective of the nonprofit arts firm?," Journal of Cultural Economics, Springer, vol. 31(2), pages 129-142, June. [Downloadable!] (restricted)
  5. Bruno S. Frey & Stephan Meier, . "The Economics of Museums," IEW - Working Papers iewwp149, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  6. 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. [Downloadable!]
  7. Cuccia, Tiziana & Cellini, Roberto, 2007. "Workers' enterprises in the case of arts production," MPRA Paper 5192, University Library of Munich, Germany. [Downloadable!]
  8. Fiorenza Belussi & Silvia Rita Sedita, 2006. "The Management of Events in the Veneto Performing Music Cluster: Bridging Latent and Permanent Organisations," "Marco Fanno" Working Papers 0028, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
  9. Beil, Richard O & Laband, David N, 1996. "The American Economic Association Dues Structure," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 179-86, Fall. [Downloadable!] (restricted)
  10. Roland Kushner & Arthur Brooks, 2000. "The One-Man Band by the Quick Lunch Stand: Modeling Audience Response to Street Performance," Journal of Cultural Economics, Springer, vol. 24(1), pages 65-77, February. [Downloadable!] (restricted)
  11. Prufer, J., 2007. "Competition and Mergers among Nonprofits," Discussion Paper 2007-022, Tilburg University, Tilburg Law and Economic Center. [Downloadable!]
    Other versions:
  12. 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. [Downloadable!] (restricted)
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