Product Variety in Religious Markets

Abstract

This paper analyzes the relationship between religious market product variety and church membership. We find that denominational variety is negatively associated with the total level of church membership in U.S. counties. This result appears to contradict the standard religious product variety model. Our data are consistent with a more general view of markets that incorporates the cost to consumers of product variety. Where product variety has significant costs, an increase in variety may reduce total market penetration. The paper suggests market characteristics that might give rise to this situation, characteristics present in the religion market.