Springer Online Journal Archives 1860-2000
Abstract In this paper, we test a six equation simultaneous model of nonprofit symphony orchestra behavior. The model is based on Hansmann's theory of nonprofit behavior in the performing arts. The results show that the most prestigious of the orchestras practise a pricing policy that encourages patrons to make a tax deductible contribution. In this manner, they achieve a pattern of price discrimination that, instead of increasing revenues, reduces revenues. Following conditions suggested by Hansmann, we are also able to draw conclusions about the objectives of nonprofit symphony orchestras.
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