Museum Revenues

The analysis of performing arts company finances in Chapter 8 focused on the problem of the earnings gap, which was defined as the difference between total expenditures and earned income. The revenue shortfall was covered by unearned income, consisting of government grants and income contributed by private supporters. Following Baumol and Bowen's lead, it was pointed out that 29. Francis Haskell, Titian and the Perils of International Exhibition, New York Review, August 16, 1990, p. 9. 30....

Earned Versus Unearned Income

The share of total revenue accounted for by earned as compared with unearned income - or, as the latter is often called, contributed income - varies widely among firms and across art forms. Symphony orchestras have the lowest earned income ratio among the five major categories. They are in general the oldest institutions in the nonprofit performing arts industry, many of them having been established in the nineteenth century. Consequently, they have long-standing ties with well-to-do patrons,...

Crossprice Elasticity Of Demand

The theory of consumer behavior tells us that the quantity demanded of a given good or service depends not only on its own price but also on the prices of substitutes and complements. Just as the price elasticity of demand measures the responsiveness of quantity purchased to changes in own price, so we can also define a cross-price elasticity or cross-elasticity, for short that measures responsiveness to changes in the prices of substitutes or complements. To define cross-elasticity in terms...

Theater

The world of theater in the United States has changed shape almost continuously during the twentieth century. From the 1920s through the 1940s Broadway was virtually synonymous with American theater. That had not always been the case, however. In the nineteenth and early twentieth centuries, theater had also thrived outside New York. There were active playhouses in all major cities and in many smaller ones. Typically they either housed a local stock or repertory organization or were visited by...