Why churches need free-riders: Religious capital formation and religious group survival
نویسنده
چکیده
Prevailing theory claims that churches thrive when they overcome the free-rider problem. However, this paper argues that religious organizations need free-riders in a dynamic setting. If individuals’ contributions to congregations increase as their exposure to religion increases, then allowing potential members to free-ride temporarily may increase future membership and contribution levels. Free-riders thus comprise a risky but necessary investment by the church. Strict churches screen out riskier investments yet still allow some freeriding, while ultra-strict churches screen out all but members’ children. This new theory yields predictions consistent with stylized empirical facts. © 2015 Elsevier Inc. All rights reserved.
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