The Market for Redemption

                                                             The Orvieto Cathedral
 

   I have lost count of the number of churches we've been inside on this trip. Usually, like the picture above, it is the most impressive, awe-inspiring building in the town. 

    When caught up in the beauty of these places economics is probably not the first thing that comes to mind. Yet in religion, like in every human activity, opportunity costs must be weighed, and limited resources allocated.

    It may seem unusual or even offensive to label the church as an economic market. However, the church offers services: Space for worship, assurance for the afterlife, confessionals, weekly or even daily services, and even a ticket to societal acceptance.

   The upheaval of the Protestant reformation makes for a fascinating economic study. Considering the 16^th Century Catholic Church as a monopolistic firm, the protestant church was a radical upstart that joined the market despite high difficulties of entry. People finally had a choice in where to expend their budget for spiritual goods and services.What ensued was a complex process of individuals making decisions to maximize their spiritual benefits and minimize costs.

      

   A strong correlation has been shown between the nature of the local government and the acceptance of this new form of religion. Areas that had more even wealth distribution were more likely to become protestant because the church framework needed the support of wealthy nobility. Areas with high unemployment and homelessness would be drawn to stay close to the Catholic church because as a last resort the could become a nun, priest, monk, bishop, or administrator. 


  The reformation was a time of new ideas, but these factors indicate that the people had their earthly well-being in mind as well when they made their choice.