The institutional forms of cooperative, profit-oriented (private) and government subsidized non-profit performing arts companies affect the behavior of their management systematically. Thus, the managers of profit-oriented theaters, operas, and orchestras tend to let plays run longer, to have a smaller number of new productions and a more narrow repertoire than do public companies. The number of rehearsals will, ceteris paribus, be smaller, and more plays suiting the preferences of the general public will be offered. These propositions are derived using the economic model of behavior looking also on the incentive effects of different types of government subsidies.
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