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Who’s watching? The market for prostitution services

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Author Info

  • Marina Della Giusta
  • Maria Laura Di Tommaso

    ()

  • Steinar Strøm

    ()

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.child-centre.unito.it/papers/child16_2005.pdf
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Bibliographic Info

Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp16_05.

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Length: 30 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:wpc:wplist:wp16_05

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Related research

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

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References

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  1. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  2. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-48, October.
  3. 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.
  4. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  5. Collins, A. & Cameron, S. & Thew, N., 1998. "Prostitution Services : An Exploratory Empirical Analysis," Papers 111, Portsmouth University - Department of Economics.
  6. 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.
  7. 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.
  8. Richard Arnott & Joseph Stiglitz, 1991. "Equilibrium in Competitive Insurance Markets with Moral Hazard," NBER Working Papers 3588, National Bureau of Economic Research, Inc.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. Lena Edlund & Evelyn Korn, 2002. "A Theory of Prostitution," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 181-214, February.
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Citations

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Cited by:
  1. 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.
  2. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2013. "Does Legalized Prostitution Increase Human Trafficking?," World Development, Elsevier, vol. 41(C), pages 67-82.
  3. Asadul Islam & Russell Smyth, 2010. "The Economic Returns to Good Looks and Risky Sex in the Bangladesh Commercial Sex Market," Development Research Unit Working Paper Series 41-10, Monash University, Department of Economics.
  4. Jakobsson, Niklas & Kotsadam, Andreas, 2009. "What explains attitudes toward prostitution?," Working Papers in Economics 349, University of Gothenburg, Department of Economics.
  5. 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.
  6. Jakobsson, Niklas & Kotsadam, Andreas, 2010. "The Law and Economics of International Sex Slavery: Prostitution Laws and Trafficking for Sexual Exploitation," Working Papers in Economics 458, University of Gothenburg, Department of Economics, revised 07 Jun 2013.
  7. 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.
  8. Di Tommaso , M. L. & Shima, I. & Strøm , S. & Bettio , F., 2007. "As bad as it gets: Well being deprivation of sexually exploited trafficked women," Memorandum 09/2007, Oslo University, Department of Economics.
  9. Samuel Lee & Petra Persson, 2012. "Human Trafficking and Regulating Prostitution," Working Papers 12-07, New York University, Leonard N. Stern School of Business, Department of Economics.

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