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A Theory of Religion: Linking Individual Beliefs

Author

Listed:
  • Ronny Razin

    (London School of Economics)

  • Gilat Levy

    (London School of Economics)

Abstract

In this paper we offer a new theory of religion. Our theory relies on the assumption that individuals in society have different beliefs about the relation between their actions and the utility they gain in a strategic social interaction (specifically, a Prisoner's Dilemma). This heterogeneity of beliefs allows for the endogenous existence of religious institutions. Such institution is characterized by its members partaking in a costly and observable activity, thus the theory provides a rationale for social rituals. In addition, members of the religious organization share similar beliefs, tend to cooperate with one another, and also face a larger degree of cooperation from the rest of society than non-members do. Our theory provides therefore a link between individual beliefs, social rituals, and social cohesion.

Suggested Citation

  • Ronny Razin & Gilat Levy, 2007. "A Theory of Religion: Linking Individual Beliefs," 2007 Meeting Papers 19, Society for Economic Dynamics.
    • Handle: RePEc:red:sed007:19
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    References listed on IDEAS

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    5. Anderson, Gary M, 1988. "Mr. Smith and the Preachers: The Economics of Religion in the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 1066-1088, October.
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