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Contracting in Japan Published online by Cambridge University Press: 10 August 2023
Japanese Buddhist temples had traditionally relied on the high levels of social capital within the local village to enforce the giving they needed to stay solvent. When men and women began to leave the villages for the anomic cities, the temples found themselves without the necessary funds. In response, they turned from what had been an effective village retainer contract to an individual fee-for-service model of finance. Unfortunately for the temples, they market their priceable services (primarily ceremonies connected to deaths) within competitive markets. Unable to sell above marginal cost, they have been unable to cross-subsidize their other – less priceable – services.
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