Is interest in the arts declining? Is the cost of the arts bound to increase? Are private theatres viable? Is public support necessary to maintain artistic quality and innovation? This book uses a political economist's approach to tackle some of the questions facing the arts today. The authors look at how the demands made by individuals such as artists, performing arts managers and museum directors influence political decisions on the arts, and how politicians and public officials respond to such demands. They use survey evidence to show that while only a small section of the population are active consumers of the arts, the majority favour the public support of free arts. They also examine such issues as the incomes of artists, the determination of fine art prices and the influence of new media techniques on the demand for and supply of the performing and visual arts. They argue that the arts are harnessed to the dominance either of the private market (as in the USA) or of political markets (as in Europe). In conclusion, they advocate the design of constitutional arrangements to produce a combination of private and public funding.