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Nonprofit Firms in the Performing Arts

In: Handbook of the Economics of Art and Culture

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  • Brooks, Arthur C.

Abstract

The nonprofit performing arts have received substantial attention in the cultural economics literature, and represent an interesting application for many areas of economic inquiry. This chapter surveys the relevant theory and the most prominent empirical studies on performing arts nonprofits. The chapter begins with a description of the nonprofit sector - and the role of the performing arts in this sector - around the world. I then ask why performing arts nonprofits exist, taking into account the objectives of both consumers and suppliers of performing arts services. Next, I study the production and cost conditions that these firms face, paying particular attention to issues such as product quality, product cross-subsidization, and the so-called "cost disease". The issue of revenue sources and their generation follows, with a special emphasis on earned revenues, donations, and government subsidies. This discussion includes topics such as ticket pricing strategies, fundraising innovations, and the relationship between private giving and public funding. The chapter closes with suggestions for future research on the nonprofit performing arts.

Suggested Citation

  • Brooks, Arthur C., 2006. "Nonprofit Firms in the Performing Arts," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 15, pages 473-506, Elsevier.
    • Handle: RePEc:eee:artchp:1-15
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    Cited by:

    1. Paul DiMaggio, 2003. "Nonprofit Organizations and the Intersectoral Division of Labor in the Arts," Working Papers 37, Princeton University, School of Public and International Affairs, Center for Arts and Cultural Policy Studies..
    2. Andrea Baldin & Trine Bille & Andrea Ellero & Daniela Favaretto, 2016. "Multiobjective optimization model for pricing and seat allocation problem in non profit performing arts organization," Working Papers 20, Department of Management, Università Ca' Foscari Venezia.
    3. repec:pri:cpanda:wp30-dimaggio is not listed on IDEAS
    4. Lee Young-Joo, 2021. "Nonprofit Arts Organizations’ Pursuit of Public Interests: The Role of Board Diversity," Nonprofit Policy Forum, De Gruyter, vol. 12(4), pages 563-587, December.

    More about this item

    JEL classification:

    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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