Economics Working Papers
 

Document Type

Working Paper

Publication Date

8-2010

Abstract

Megachurches are thriving in religious markets at a time when Americans are asserting their ability as consumers of religious products to engage in religious switching. The apparent success of megachurches, which often provide a low cost and low commitment path by which religious refugees may join the church, seems to challenge Iannocconne’s theory that high commitment churches will thrive while low commitment churches will atrophy. This paper employs a signaling model to illustrate the strategy and organizational forms megachurches employ to indicate a match between what the church produces and the religious refugee wishes to consume in an effort to increase their membership. The model illustrates that megachurches expect little in regard to financial or time commitment of new attendees. However, once the attendees perceive a good fit with the church, the megachurch increases its expectation of commitment. Data from the FACT2000 survey provide evidence in support of the model’s predictions.

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Link to Current Version: http://epublications.marquette.edu/econ_fac/139/

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