Wilson articulates a theory of multilayered representation in which nonprofit organizations play an important role. Applying James Madison’s Federalist No. 10 to the nonprofit sector, the author maintains that nonprofits offer additional layers of representation outside of election cycles and party platforms. Nonprofit organizations enable multilayered representation by reflecting the multidimensional needs and aspirations of individuals and the communities to which they belong. This representation lessens the possibility of faction as nonprofits create a wide and varied range of opportunities for identity development at both the individual and community levels.

Bromley and Santos make a cultural argument that situates nonprofit organizations within the broader context of organization itself. Due to the ascendancy of organization as an emergent category of social structure, the authors suggest that all types of organizations (government, business, nonprofit) are becoming increasingly similar. As the divisions between them (e.g., for-profit organization vs. nonprofit organization, etc.) become less prominent, the sector in need of explanation is the organizational one, writ large. Thus, rather than explaining the nonprofit sector, per se, the authors argue that the nonprofit sector is just one manifestation of organization and that it is organization that deserves our attention. In this sense, sector theory as traditionally understood (as narrow attention to the nonprofit sector in comparison to other sectors) diverts attention from more fundamental sociocultural developments. The authors argue that one can only understand nonprofit organizations vis-à-vis government and for-profit organizations by first understanding this broader context.

This chapter explores the nature of nonprofit-sector theory. To do this, we first examine what we theory, and what we mean by nonprofit-sector theory. We also propose a framework for evaluating what makes good nonprofit-sector theory, based on the function of theory (define, describe, explain, prescribe, predict, and evaluate) and the theory's depth, breadth, and relevance. For this volume, we have taken a broad and inclusive approach to nonprofit-sector theory, defining it as answering the questions, “What is the nonprofit sector?” and “Why does the nonprofit sector exist?”

In this chapter, we investigate the economic choices – especially the price-output choices – made by performing arts firms. We cover the factors that help in determining the optimal price–output combination for performing arts firms. Furthermore, we discuss a multitude of market types and how these market types influence the behavior of performing arts firms. We also present the objectives of the performing arts firms, which depend on whether they are in the commercial or the not-for-profit sector of the economy. Ultimately, we end up with a model for the performing arts firm that is able to predict both ticket prices and length of season.