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Who’s watching? The market for prostitution services

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Author Info

  • Della Giusta, Marina

    ()
    (University of Reading, UK)

  • Di Tommaso, Maria Laura

    ()
    (University of Turin, Department of Economics "S. Cognetti de Martiis")

  • Strøm, Steinar

    ()
    (Dept. of Economics, University of Oslo)

Abstract

This paper presents an economic model of prostitution, which differs from the existing literature in that it makes no restrictive assumptions regarding the gender, pay, and nature of forgone earning opportunities of prostitutes and clients, and applies the same behavioural hypotheses to both. Our model gives a central role to stigma and reputation effects for both clients and prostitutes. We discuss demand, supply, and equilibrium results, indicating the possible effects of different policies on the industry and its different markets.

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File URL: http://www.sv.uio.no/econ/english/research/memorandum/pdf-files/2005/Memo-27-2005.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 27/2005.

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Length: 31 pages
Date of creation: 14 Nov 2005
Date of revision:
Handle: RePEc:hhs:osloec:2005_027

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
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Related research

Keywords: Prostitution; Gender; Labour supply and demand; Reputation.;

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References

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  1. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  2. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June.
  3. Lena Edlund & Evelyn Korn, 2002. "A Theory of Prostitution," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 181-214, February.
  4. Cameron, S. & Collins, A., 2001. "Estimates of a Model of Male Participation in the Market for Female Heterosexual Prostitution Services," Papers 139, Portsmouth University - Department of Economics.
  5. Richard Arnott & Joseph Stiglitz, 1991. "Equilibrium in Competitive Insurance Markets with Moral Hazard," NBER Working Papers 3588, National Bureau of Economic Research, Inc.
  6. Paul Gertler & Manisha Shah & Stefano M. Bertozzi, 2005. "Risky Business: The Market for Unprotected Commercial Sex," Journal of Political Economy, University of Chicago Press, vol. 113(3), pages 518-550, June.
  7. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics, revised Oct 2001.
  8. Collins, A. & Cameron, S. & Thew, N., 1998. "Prostitution Services : An Exploratory Empirical Analysis," Papers 111, Portsmouth University - Department of Economics.
  9. Rao, Vijayendra & Gupta, Indrani & Jana, Smarajit, 2000. "Sex workers and the cost of safe sex - the compensating differential for condom use in Calcutta," Policy Research Working Paper Series 2334, The World Bank.
  10. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  11. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
  12. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  13. Rao, Vijayendra & Gupta, Indrani & Lokshin, Michael & Jana, Smarajit, 2003. "Sex workers and the cost of safe sex: the compensating differential for condom use among Calcutta prostitutes," Journal of Development Economics, Elsevier, vol. 71(2), pages 585-603, August.
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Citations

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Cited by:
  1. Seo-Young Cho & Axel Dreher & Eric Neumayer, 2011. "Does Legalized Prostitution Increase Human Trafficking?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 96, Courant Research Centre PEG, revised 16 Jan 2012.
  2. Trevon D. Logan & Manisha Shah, 2013. "Face Value: Information and Signaling in an Illegal Market," Southern Economic Journal, Southern Economic Association, vol. 79(3), pages 529-564, January.
  3. Francesca Bettio & Tushar Nandi, 2010. "Evidence on women trafficked for sexual exploitation: A rights based analysis," European Journal of Law and Economics, Springer, vol. 29(1), pages 15-42, February.
  4. Islam Asadul & Smyth Russell, 2012. "The Economic Returns to Good Looks and Risky Sex in the Bangladesh Commercial Sex Market," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-25, May.
  5. Maria Laura Di Tommaso & I. Shima & S. Strøm & F. Bettio, 2007. "As bad as it gets: well being deprivation of sexually exploited trafficked women," CHILD Working Papers wp10_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  6. Jakobsson, Niklas & Kotsadam, Andreas, 2009. "What explains attitudes toward prostitution?," Working Papers in Economics 349, University of Gothenburg, Department of Economics.
  7. Niklas Jakobsson & Andreas Kotsadam, 2013. "The law and economics of international sex slavery: prostitution laws and trafficking for sexual exploitation," European Journal of Law and Economics, Springer, vol. 35(1), pages 87-107, February.
  8. Lee, Samuel & Persson, Petra, 2013. "Human Trafficking and Regulating Prostitution," Working Paper Series 996, Research Institute of Industrial Economics.
  9. Adriaenssens, Stef, 2010. "'Its all supply and demand': Market fatalism and norm construction by prostitution clients in the Netherlands and Belgium," Working Papers 2010/18, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.

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