The invisible hand plays dice

Multiple equilibria in sects markets

authored by

Panu Poutvaara, Andreas Wagener

Abstract

Religious participation is much more widespread in the United States than in Europe, while Europeans tend to view sects more suspiciously than Americans. We propose an explanation for these patterns without assuming differences in preferences or market fundamentals. We study a religious market where both demand and supply of spiritual services are endogenous. Such markets may have multiple equilibria. Further, equilibria with more sects result in higher welfare and lower membership costs, as secular societies tend to host on average more demanding sects.

Organisation(s)

Institute of Economic Policy

External Organisation(s)

University of Helsinki

Type

Article

Journal

PUBLIC CHOICE

Volume

145

Pages

483-502

No. of pages

20

ISSN

0048-5829

Publication date

12.2010

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Sociology and Political Science, Economics and Econometrics

Electronic version(s)

https://doi.org/10.1007/s11127-009-9576-y (Access: Closed)