Abstract

Since Baumol and Bowen, technology has been interpreted as a major obstacle for the pursuit of economic efficiency on the part of the performing arts producers. The empirical evidence on Baumol's disease provides us with quite contradictory outcomes, and in any case does not prove fully convincing. The economic analysis of the performing arts suggests a long and continuous story of technological innovation, both on and off stage; moreover, producers can adopt their choices within a comfortable range of options, variously affecting their cost structure. Nevertheless, they are not encouraged to innovate, due to the prevailing role of information in this market: a strong impact could be exerted by public action providing them with powerful incentives to technological innovation.