*The Religion Market*

The rational choice approach to religion draws a close analogy between religion and the market economy.Religious firms compete against one another to offer religious products and services to consumers, who choose between the firms. To the extent that there are many religious firms competing against each other, they will tend to specialize and cater to the particular needs of some segments of religious consumers. This specialization and catering in turn increase the number of religious consumers actively engaged in the religious economy. This proposition has been confirmed in a number of empirical studies. It is well known that strict churches are strong and growing in the contemporary United States, whereas liberal ones are declining. For Iannaccone’s religious experience is a jointly produced collective good. Thus members of a church face a collective action problem. Strict churches, which often impose costly and esoteric requirements on their members, are able to solve this problem by weeding out potential free riders, since only the very committed would join the church in the face of such requirements. Consistent with the notion that religious experience is a collective good, Iannaccone et al show that churches that extract more resources from their members (in the form of time and money) tend to grow in membership.