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The invisible hand plays dice: multiple equilibria in sects markets

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  • Panu Poutvaara
  • Andreas Wagener

Abstract

Religious participation is much more widespread in the United Statesthan in Europe, while Europeans tend to view sects more suspiciouslythan Americans We propose an explanation for these patterns withoutassuming differences in preferences or market fundamentals We study areligious market where both demand and supply of spiritual services areendogenous Such markets may have multiple equilibria Further, equilibriawith more sects result in higher welfare and lower membership costs, assecular societies tend to host on average more demanding sects
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Suggested Citation

  • Panu Poutvaara & Andreas Wagener, 2010. "The invisible hand plays dice: multiple equilibria in sects markets," Public Choice, Springer, vol. 145(3), pages 483-502, December.
    • Handle: RePEc:kap:pubcho:v:145:y:2010:i:3:p:483-502
    DOI: 10.1007/s11127-009-9576-y
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    Cited by:

    1. Heinsalu, Sander, 2020. "Investing to access an adverse selection market," International Journal of Industrial Organization, Elsevier, vol. 72(C).
    2. Jan Fałkowski & Przemysław Kurek, 2020. "The transformation of supreme values: Evidence from Poland on salvation through civic engagement," Public Choice, Springer, vol. 185(1), pages 113-129, October.
    3. Vikas Kumar, 2013. "A model of secularism in the state of nature," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1199-1212, February.

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    More about this item

    Keywords

    Sects; Religion; Sects markets; Z12; L89; J24; D71;
    All these keywords.

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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