The Divine Economy: Analyzing Religion as Platform and Institution

This article provides a thorough analysis of Paul Seabright's concept of the "divine economy," which sheds new light on the functioning of religion. Instead of focusing solely on the spiritual realm, the author considers religious systems as advanced platforms for managing social relations and human capital. The text explains the metaphor of religion as an institution that "preaches in poetry but administers in prose," separating the symbolic from the pragmatic management of material and existential needs. The analysis utilizes economic tools such as club goods theory, network effects, and Simpson's paradox in religious demography. The reader will learn how rituals function as costly signals of loyalty, minimizing the risk of opportunism within a community. This innovative view of religion as an insurance system and verification protocol that has effectively managed asymmetries of authority and social trust for centuries.