IZA DP No. 7188: Competition vs. Monopoly in the Religious Marketplace: Judaism in the United States and Israel
Economic analysis is used to compare different paradigms for understanding the marketplace for religions and religious ideas. The "Sacred Canopy" paradigm views it necessary for social stability to grant monopoly power to an official state religion. The "New Paradigm" views separation of Church and State, leading to competition in the religious marketplace, as guarantor of freedom of conscience. Judaism in the United States illustrates the outcome in a competitive religious environment. Judaism in Israel illustrates the outcome in a monopoly experiencing potential competition, possibly leading to an oligopoly structure.