By Monika Mokre
The topic of this paper is the question how arts managers can apply the results of cultural economics to their work. The usefulness of cultural economics shall be tried on two main questions of arts management:
-How to raise money for projects, and
-how to spend it economically and reasonably.
The second question is discussed using the Rational-Choice-Theory and Baumols Cost-Disease-Model. To answer the first question income and price elasticities of the arts are explained.
The author comes to the result that very few results of cultural economics can directly be applied to arts management. Nevertheless, many considerations of cultural economics are worthwhile to look at for people working in arts management, as they clearly describe the conditions under which arts institutions are working.