Merge Two Competing Chamber Music Presenter Organizations?

The performing arts market is tremendously fragmented. That fragmentation inevitably leads to inefficiencies. There are more than 520 presenter entities who are organizational members of Chamber Music America. And one thing that’s clear from examining CMA’s directory of chamber music presenters is that communities in the U.S. that have performing arts markets that are robust enough to have one presenter tend in fact to have two or more chamber music presenters. In many cases, that means that there is relatively intense competition for what is almost certainly a finite market—a finite monthly or quarterly consumer spend per household. Probably the same is also true in cities in Europe and the U.K.

For simplicity and to directly respond to the anonymous emailer’s question, I’ve put together a mathematical model that is for two competitors in a market—a duopoly. It would be far more complex to create an accurate, actionable financial merger model for three or more competitors. Actually, if the proposition were to simultaneously consolidate three or more competitors into one unified presenter organization, then you could still use this Cournot-Nash game-theory model as-is. You would simply put your own figures in as Presenter P, and then sum the figures for all of your competitors and put those sums in the Rival R column. Click here to read more.