Economic Origins of Roman Christianity
by Robert B. Ekelund Jr. and Robert D. Tollison
University of Chicago Press, 2011
Cloth: 978-0-226-20002-6 | Electronic: 978-0-226-20004-0
DOI: 10.7208/chicago/9780226200040.001.0001
ABOUT THIS BOOKAUTHOR BIOGRAPHYREVIEWSTABLE OF CONTENTS

ABOUT THIS BOOK

In the global marketplace of ideas, few realms spark as much conflict as religion. For millions of people, it is an integral part of everyday life, reflected by a widely divergent supply of practices and philosophical perspectives. Yet, historically, the marketplace has not always been competitive. While the early Common Era saw competition between Christianity, Judaism, and the many pagan cults, Roman Christianity came eventually to dominate Western Europe.
 
Using basic concepts of economic theory, Robert B. Ekelund Jr. and Robert D. Tollison explain the origin and subsequent spread of Roman Christianity, showing first how the standard concepts of risk, cost, and benefit can account for the demand for religion. Then, drawing on the economics of networking, entrepreneurship, and industrial organization, the book explains Christianity's rapid ascent. Like a business, the church developed sound business strategies that increased its market share to a near monopoly in the medieval period. This book offers a fascinating look at the dynamics of Christianity’s rise, as well as how aspects the church’s structure—developed over the first millennium—illuminate a number of critical problems faced by the church today.

AUTHOR BIOGRAPHY

Robert B. Ekelund Jr. is the Catherine and Edward Lowder Eminent Scholar of Economics at Auburn University. He is the author of numerous books, including The Marketplace of Christianity with Robert D. Tollison and Robert F. Herbert. Robert D. Tollison is the C. Wilson Newman Professor of Economics at Clemson University.

REVIEWS

“An engrossing and insightful account of the branding of early Christianity through entrepreneurship, networking, manipulation of civil governments, and the control of entry into the Roman religion market. This is a major contribution to the study of religion, giving us a fresh, analytical approach to early Christianity and how it became the powerful medieval church.”
— Rachel M. McCleary, John F. Kennedy School of Government, Harvard University

Economic Origins of Roman Christianity takes readers on a sweeping tour of a millennium, introducing us to Saint Paul as entrepreneur, the Nicaean Council as product strategy, and Charlemagne and Pope Leo III as masters of vertical integration. Using economic models, the authors narrate a history of religion that adds a new dimension to our typical view of the political, military, and theological origins of Christianity. There is much here for economists to ponder and enough storytelling to keep history buffs going.”

— Larry Witham, author of Marketplace of the Gods: How Economics Explains Religion

 “By applying fundamental economic principles, Ekelund and Tollison shed light on the often mysterious ecclesiastical practices of the Roman Catholic Church as well as its weakening grip as an institutional monopoly in the marketplace of religions. Economic Origins of Roman Christianity will have wide ramifications for economists, sociologists, and political scientists concerned with economic development, the roots of religious plurality, and institutional change.”

— Murat Iyigun, University of Colorado

TABLE OF CONTENTS

Preface

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0001
[Roman Church, Christianity, monopoly power]
This chapter first sets out the book’s purpose, which to chronicle in economic terms the successful rise and rapid spread of Roman Christianity, from its humble origins when it faced persecution and multiple forms of competition through the turn of the twelfth century, at which point it had become the dominant religious and economic institution in many parts of Europe. It then discusses the evolution of monopoly power of the church, followed by an overview of the subsequent chapters. (pages 1 - 18)
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Introduction

Aspiring to Monopoly

A Word on Method

The Roman Church as a High Medieval Monopoly

Plan of the Book

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0002
[economics, religion, neoclassical approach, rationality, risk preference, Adam Smith, Max Weber]
This chapter reviews literature that is related to the present study. It considers contributions by economists, sociologists, historians of religion, and others who have made important contributions to the understanding of religious institutions and processes. Some of these scholars are historical figures (e.g., Adam Smith and Max Weber), and some are modern-day pioneers of the economics and sociology of religion (e.g., Rachel McCleary of Harvard University). The chapter argues that the economics of religion is best studied utilizing a modified neoclassical approach which includes a contemporary conception of rationality and risk preference. (pages 19 - 31)
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Introduction

Adam Smith and Max Weber

Contemporary Theoretical Approaches to the Demand for Religion

Monopoly, Rationality, History, and Religion

Conclusion: Economics and Religious Behavior

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0003
[religion, rational choice, Christianity, uncertainty, religious good, religious contracts]
This chapter discusses the economics of religion. It develops a simple model of rational choice of religious type based on uncertainty concerning an afterlife or “assurances of eternal salvation”—the essential (but not the only) product supplied by Christianity. The analysis is based on utility maximization under uncertainty, where individual decisions take place within a multicontract competitive environment. The chapter examines the nature of the religious good as well as the method through which such a good spreads and gains credence among those who demand it. It also considers the nature of the demand for religious contracts and the manner in which the characteristics of the essential religious good (assurances of an afterlife) relate to those contracts. (pages 32 - 50)
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Introduction

Nature of the Religious Good

Demands and Contracts for the Religious Good

Conclusion: Focus on First-Millennium Christianity

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0004
[economic analysis, Christianity, Saint Paul, Jewish Diaspora]
This chapter has three primary goals: (1) to initiate an integration of the economic theories of entrepreneurship and networking with sociological and historical analyses of the initial spread of Christianity; (2) to relate these developments to historical Christianity, and (3) to present some statistics showing how Saint Paul played an important role in this spread. It concludes that the early spread of Christianity resulted from the interplay between entrepreneurial activities and network effects spawned by the teachings of Paul to the Gentiles and through the Jewish Diaspora. (pages 51 - 77)
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Introduction

Economic Analysis and Early Christianity

Entrepreneurship: Proselytizing the New Religion

Network-Consumption Externalities and Credence Issues

The Adoption of Christianity: The Role of Saint Paul

Conclusion

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0005
[Roman Empire, religion, cartelization, economic theory, Constantine, agency costs, Christian church]
This chapter offers an economic theory illustrated with historical discussion underlying the adoption of Christianity by the late Roman Empire. It suggests that efficiency considerations (which include rent seeking and cost savings) led the Roman state to at first adopt and then cartelize the religion under the emperor Constantine and other state leaders in the fourth century ce. The provision of a unified Christian religion may be described in economic terms as an arrangement that reduced agency costs—the costs of maintaining order and a stable, functioning society—for the state and provided rents to the Christian church. (pages 78 - 105)
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Introduction

A Theory of the Adoption and Cartelization of Christianity by Rome

Roman Acceptance of Christianity: Economic Factors

The Critical Role of Constantine and the March to Cartelization

Conclusion

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0006
[Christianity, church monopoly, oligopoly, secular powers, economic theory]
This chapter outlines, in economic terms, how the Roman Church gained a virtual monopoly over religion across most of Europe toward the end of the first millennium. Three key economic factors explain how monopoly was advanced from the springboard of fourth-century development. First, the church continued to promulgate the product definition of “Christian” established at Nicaea together with assertions of Roman papal primacy. Second, economic reciprocity emerged between civil entities and the church within the political and jurisdictional melee that replaced the Roman Empire. Last, the continuing entrepreneurial activity of the church spread Christianity across Europe, creating an emerging vertical integration within the church even as the primacy of the Roman bishop remained in dispute. (pages 106 - 141)
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Introduction

Economic Theory and Christianity in the Fourth–TwelfthCenturies

Constantine through Justinian and Gregory I: Centuries of Competition and Consolidation

The Frankish Kingdoms, Charlemagne, and the Rescue of the Roman Papacy

Conclusion: The Roman Church circa the Early Ninth Century

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0007
[Roman Church, Christianity, monopoly, civil governments, vertical integration, Christian church]
This chapter discusses how the Roman Church reached the levels of power achieved in the High Middle Ages. There were three critical problems that needed to be solved: (i) competition, conflict, and concordance with civil governments; (ii) continuation of the claims and definition of Roman papal dominance within the vertical integration of a hierarchical church; and (iii) competition within the Christian church for absolute authority over Western European Christians. (pages 142 - 170)
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Introduction: The Bumpy Road to Monopoly

After Charlemagne: Breakdowns, Conflict, and Invasions

Competition with Byzantium and the “Great Schism”

Roman Church Monopoly Solidifies

Conclusion

- Robert B. Ekelund Jr., Robert D. Tollison
DOI: 10.7208/chicago/9780226200040.003.0008
[church, monopoly, Roman church, Christian church, Christianity, religion markets]
This chapter discusses how the church reached monopoly status, Roman monopoly processes and market entry, and how the economics of early Christianity relates to contemporary religion. It concludes that studying the way in which the early church achieved market dominance is instructive not only in explaining second millennium events in religion markets, but also provides much food for thought regarding the contemporary religious environment. (pages 171 - 196)
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Introduction

How the Church Reached Monopoly Status

Roman Monopoly Processes and Market Entry

Does the Economics of Early Christianity Relate to Contemporary Religion?

Appendix: The Impact of Saint Paul

Notes

References

Index