Lessons from Delphi: Religious markets and spiritual capitals

We develop a generalized theory of religious markets and apply its insights to archaic Greece, ancient Israel, and modern America. Our starting point is a simple game-theoretic model in which secular leaders enhance their power by influencing the location of sacred places. The model includes standard equilibria – such as pure competition and state-sponsored monopoly – as well as a novel equilibrium, which we call the neutral nexus, wherein a sacred place gains widespread authority precisely because it lies beyond the centers of secular power. The nexus can promote cooperation, innovation, and exchange, especially where markets are weak and power is fragmented. It can also sustain random divination – a surprisingly effective way to manage conflict and risk. The sanctuary of Delphi illustrates the real-world relevance of the neutral nexus, as does Israel's tabernacle of Shiloh.

Research highlights▶ Shows conditions under which a new equilibrium, the neutral nexus, emerges. ▶ Neutral nexus involves spiritual “capitals” arising in places beyond all centers of secular power. ▶ Neutral nexus emerges precisely because the spiritual location is not dominated by secular power. ▶ Positive network externalities allow neutral religious player to thrive despite no loyalty to any one political authority. ▶ Applied to the unique case of the Delphic Oracle.