This textbook examines the field of art and culture from the perspective of economic thinking and action. It underscores the importance of public funding through economic phenomena such as Baumol's cost disease and the occurrence of external effects. In the context of an analysis of private donations, it discusses the extent to which funding gaps can be filled by the engagement of businesses and cultural consumers, as well as the role of funding conditions and barriers to cultural consumption. The benefits of economic approaches are illustrated and discussed through selected focuses on visual and performing arts. The cultural economics is presented clearly with the help of numerous examples, illustrations, and tables. This edition has been completely revised and updated.