From Jesus to Christianity: The economics of sacrifice

This article models the birth of a new religion from the ashes of apocalyptic prophecy. Christianity started around the imminent expectation of God’s Kingdom. Followers forsook worldly opportunities to prepare for the event. As the Kingdom’s arrival tarried, they found themselves “trapped” because those sacrifices—like transaction-specific investments—were wasted if they dropped out. This provided incentives to stay and transform the faith. Such effort, enhanced by reaction to the cognitive dissonance caused by prophecy failure, turned an apocalyptic movement into an established church. A survey of other apocalyptic groups confirms that dropout costs are critical to explaining outcomes.