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The invisible hand plays dice: multiple equilibria in sects markets

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  • Poutvaara, Panu
  • Wagener, Andreas

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

Suggested Citation

  • Poutvaara, Panu & Wagener, Andreas, 2010. "The invisible hand plays dice: multiple equilibria in sects markets," Munich Reprints in Economics 19822, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:19822
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    References listed on IDEAS

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    1. Robert J. Barro & Rachel M. McCleary, 2005. "Which Countries Have State Religions?," The Quarterly Journal of Economics, Oxford University Press, vol. 120(4), pages 1331-1370.
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    3. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985, April.
    4. Ekelund, Robert B, Jr & Hebert, Robert F & Tollison, Robert D, 1989. "An Economic Model of the Medieval Church: Usury as a Form of Rent Seeking," Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(2), pages 307-331, Fall.
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    6. Brooks Hull & Frederick Bold, 1998. "Product Variety in Religious Markets," Review of Social Economy, Taylor & Francis Journals, vol. 56(1), pages 1-19.
    7. Laurence Iannaccone & Eli Berman, 2006. "Religious extremism: The good, the bad, and the deadly," Public Choice, Springer, vol. 128(1), pages 109-129, July.
    8. Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September.
    9. Bryan Graham & Jonathan Temple, 2006. "Rich Nations, Poor Nations: How Much Can Multiple Equilibria Explain?," Journal of Economic Growth, Springer, vol. 11(1), pages 5-41, March.
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    12. Robert B. Ekelund Jr. & Robert F. Hebert & Robert D. Tollison, 2008. "The Marketplace of Christianity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550717, January.
    13. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
    14. Eli Berman, 2003. "Hamas, Taliban and the Jewish Underground: An Economist's View of Radical Religious Militias," NBER Working Papers 10004, National Bureau of Economic Research, Inc.
    15. Azzi, Corry & Ehrenberg, Ronald G, 1975. "Household Allocation of Time and Church Attendance," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 27-56, February.
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    Cited by:

    1. 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.

    More about this item

    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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