Rethinking the Study of Religious Markets

Abstract

In the early 1990s, little work was being produced on the economics of religion; today, dozens of papers are being written (and published) on the topic, including articles in the top journals on economics and sociology. This body of work has produced a number of useful findings. Starting with the seminal contribution by Laurence Iannaccone (1992), research has shown that seemingly bizarre religious practices (such as forcing adherents to act in strange ways or sacrifice valuable property) are in fact crucial screening devices; organizations which embrace these “irrational” practices often grow the fastest (at least initially). Work has also shown that religious faith does not wilt in the face of scientific knowledge. This article deals with religious markets, focusing on theories of interreligious competition and congregations' awareness or concern about competition with secular forces vis à vis religious forces. It argues that work on religious competition has focused too narrowly on competition among congregations, and that more work should be done examining religious responses to secular phenomena.