In this article religion is viewed as a collectively produced good. Religious groups must, therefore, overcome collective action problems, namely, coordination. This problem is usually alleviated by entering into an agency relationship with an organizer whose job is to ensure efficient production of religious goods. This will lead to an increase in participation from congregants and an increase in quality of the religious goods. However, this relationship is open to the principal–agent problem. Using data from the American Congregational Giving Study this paper finds that the organizational structure of religious groups makes some groups more susceptible to principal–agent problems, which ultimately impacts participation levels.
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