Abstract
Religious fundamentalism is observed across the world. We investigate its roots
using agent-based simulations of religiosity dynamics in a spatially dispersed population. Agents’ religiosity responds to neighbors via direct interactions as well as via
club goods effects. A simulation run is deemed fundamentalist if the final distribution
contains a cohesive subset of agents with very high religiosity. We investigate whether
such distributions are more prevalent when model parameters are shifted to reflect the
transition from traditional societies to the modern world. The simulations suggest that
the rise of fundamentalism in the modern world is aided by weaker attachment to the
peer group, greater real income, and less compatibility between religious and secular goods, and arguably also by higher relative prices for secular goods and lower tolerance. Surprisingly, the current model suggests little role for the rise of long-distance communication and transportation