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As in, if you record a huge Mahler symphony in the same concert as a very quiet oboe concerto, would you not raise the volume of the concerto to come closer to "normalized" so there is not a huge volume discrepancy?
Of course not. That would be a preposterous thing to do, if the concert is to be reproduced as a whole. You said at the outset that this was an encore and presumably it would be reproduced as such. Therefore, there should be no change in the levels.
If you make level changes during a concert recording, then you are requiring the listener to jump up and compensate for them by varying amplifier volume during replay, for obvious reasons. That's not a kind thing to do.
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Forgive me if I've missed this, but you do know what 4'33" is right?
Of course. Just because the work is essentially silent doesn't mean that one suddenly throws out the principles of good sound recording and reproduction, thus leading to the poor result you described at the outset.
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Anyone else happen to have the opportunity to record this piece? This was the encore to a new music recital. Any special ways you went about it?
If your view is that the general noise in the auditorium is an essential component in the piece, then what is required is appropriate microphone technique to capture it (eg additional ambient mics placed in the audience), thus reducing the need to apply excessive gain. Even so, the correctness of that approach is debatable.