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Sacrifice and Sorting in Clubs

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  • Jean-Paul Carvalho

    (Department of Economics, University of California-Irvine)

Abstract

In club models of religion, sacrifices demanded by religious groups promote efficient production of club goods by screening out free riders. An alternative, complementary view is that religious clubs provide a means of sorting, matching individuals with similar characteristics. Sorting differs from screening in that it operates on traits that do not directly affect club goods production. This paper explores the role of sacrifice in sorting among religious clubs when individuals prefer to interact with their own type. Despite this own-type bias, the usual free- rider problem in club goods production can inhibit sorting among groups. Pro- hibitions and demands for stigmatizing behavior can solve this problem. Costly sacrifices are demanded, not by groups catering to the majority, but by those attracting rare/exotic types. The rarer the type, the more costly the sacrifice required to a chieve sorting.

Suggested Citation

  • Jean-Paul Carvalho, 2015. "Sacrifice and Sorting in Clubs," Working Papers 151604, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:151604
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    File URL: https://www.economics.uci.edu/research/wp/1516/15-16-04.pdf
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    References listed on IDEAS

    as
    1. Jean-Paul Carvalho, 2016. "Identity-Based Organizations," American Economic Review, American Economic Association, vol. 106(5), pages 410-414, May.
    2. Alberto Bisin & Thierry Verdier, 2000. ""Beyond the Melting Pot": Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 955-988.
    3. Jean-Paul Carvalho, 2017. "Coordination and culture," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(3), pages 449-475, October.
    4. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    5. Jason A. Aimone & Laurence R. Iannaccone & Michael D. Makowsky & Jared Rubin, 2013. "Endogenous Group Formation via Unproductive Costs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1215-1236.
    6. K. R. Narayanan, 1954. "Freedom in Modern Society," India Quarterly: A Journal of International Affairs, , vol. 10(4), pages 376-381, October.
    7. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 271-291, April.
    8. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters, in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies, Princeton University Press.
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    Cited by:

    1. Simon Clark, 2020. ""You're Just My Type!" Matching and Payoffs When Like Attracts Like," Edinburgh School of Economics Discussion Paper Series 295, Edinburgh School of Economics, University of Edinburgh.
    2. Ennio E. Piano, 2018. "Outlaw and economics: Biker gangs and club goods," Rationality and Society, , vol. 30(3), pages 350-376, August.

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    More about this item

    Keywords

    Club goods; Economics of religion; Sorting;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • Z1 - Other Special Topics - - Cultural Economics

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