Paper presented at the Fourth International Conference on Cultural Economics held May 12-14, 1986, at the Palace of the Popes in Avignon, France.

The author examines the economic efficiency of art centers over theatres and makes the following conclusion: Arts Centers are not efficient suppliers of the arts, their purchasing power is insufficient to gain economies of scale nor can these be obtained from within, and as a proportion of their expenditure, their overheads are far higher (than theatres). But saying this is not new, for is Small is Beautiful and arts centers are seen as agencies for enabling people to experience the arts not just as passive consumers but also as active consumers, then arts centers are ideally designed for this purpose. But the costs will be great for each arts center. Funding bodies will have to recognize this and indeed the fact that for all the arts whether theatre or arts centers, they are still obtaining immense returns for their money for relatively little input. (p. 213)

Includes tables and references.

Paper presented at the Fourth International Conference on Cultural Economics held May 12-14, 1986, at the Palace of the Popes in Avignon, France.