Divine Innovation: Religion and Service Provision by Religious Organizations in India

S. Iyer, C. Velu, J. Xue & T. Chakravarty
This paper examines innovations to religious and non-religious service provision by religious organizations in India. We present a stylized Hotelling-style model in which two religious organizations position themselves at opposite locations to differentiate themselves on the religious spectrum in order to compete to attract adherents. Moreover, the model predicts that economic inequality can make both organizations increase their provision of non-religious services to retain adherents. In order to test our propositions, we present unique primary...
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