A passive radiator actually works very similar to a port in an enclosure. In what is commonly called a "ported" enclosure, you have a mass of air that resides in the port. When the driver oscillates (moves forward and backward), the air mass in the port is excited by the compression and rarefaction of the air molecules in the enclosure. The advantage, as we all know, is increased output and lower driver-induced distortion for a given output.
So how does a passive radiator (PR) work? Well, the port works the exact same: it is excited by the compression and rarefaction of the air molecules in the enclosure (this work is done by the driver). The PR moves in and out, in the same way that the air mass in the port moves in and out.
If they behave the same, why choose one over the other? The big advantage a PR holds is in achieving a low resonant frequency (often referred to as a "tuning" frequency) in a reasonable space. With a port, low resonant frequencies require longer port lengths for a given port surface area. And as the driver's output increases (read: moves more air), the surface area required for the port to keep turbulence down increases as well...and this turns into an even longer port. What you eventually find is that your port takes up a lot of space and becomes a pain to work with. In place of that, we can drop in a PR or two and keep all the space that would have been lost with the port. You also lose the port resonance and air turbulence you get with a port.
Why isn't everyone using PR's? Couple of problems...most obvious is the cost. A good, high displacement PR can cost over $100. High displacement PR's are often a necessity because an effective PR system generally has PR's that can displace 2x the Vd of the drivers used in the system (ie. 4x the Sd*Xmax) If you need to use a couple for your design, this adds a lot of cost to the build, whereas your standard port will only cost you wood (or if you're really smart, whatever your local PSP dealer charges you for a flared PVC port). Second, the selection is limited: one of the only sources that I know of right now for a good, high displacement PR is from
Acoustic Elegance. The other downside is that PR's are more lossy than a port. Still, the advantages often outweigh the disadvantages.
Look for a few really cool PR's coming from
Exodus Audio/DIYCable in the future.