Jim Tobin wrote concerning high fees/salaries for conductors: >(1) is it rational behavior on the part of arts organizations to >spend so much beyond their means? I suppose it depends on the amount of subsidies the organization expects to receive. Eventually, if "costs" are greater than receipts plus subsidies, the organization will collapse. I say "eventually", because you can stay afloat for many years as long as you cover your fixed costs. Once fixed costs can not be covered, it's shutdown time. >That is, if you have subsidies (private donations are subsidies just >as much as government grants) are you dealing with the market or >something else? Subsidies/donations/grants are not part of a "pure" market, but pure markets are unfortunately a rarity. Actually, there is a "subsidy" market; supply is based on the available monies held by government, business, and private individuals/institutions intent on transferring these funds to preferred sources. Demand is made up of those organizations which search for subsidies. This market, in itself, can be a fierce one with numerous outfits vying for limited dollars. Of course, organizations want "name" conductors for prestige purposes and to increase their audience. In professional sports, we tend to think that the "name" athletes paid many millions of dollars per year are a drag on the economic viabilty of the organization and an abomination to boot. However, many of these athletes bring to the organization more money than the amount of their large salaries. This can happen with conductors as well. As I've said before, the world of classical music is as much subject to economic considerations as any other field. That's why I have great admiration for small businesses; with little exception, nobody's going to give a small business any donations or grants, and Government will not bail them out either. They are on their own, and success is a true achievement. Overall, I favor musical organizations taking some risks based on market research and an inner drive to be distinctive and provide audiences with exciting musical seasons. But, there isn't much of this going on, and playing it "safe" ultimately results in downfall. Don Satz [log in to unmask]