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Who’s watching? The market for prostitution services

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

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References

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  1. George A. Akerlof, 1978. "A theory of social custom, of which unemployment may be one consequence," Special Studies Papers 118, Board of Governors of the Federal Reserve System (U.S.).
  2. 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.
  3. Richard Arnott & Joseph Stiglitz, 1991. "Equilibrium in Competitive Insurance Markets with Moral Hazard," NBER Working Papers 3588, National Bureau of Economic Research, Inc.
  4. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  5. 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.
  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. Lena Edlund & Evelyn Korn, 2002. "A Theory of Prostitution," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 181-214, February.
  8. Collins, A. & Cameron, S. & Thew, N., 1998. "Prostitution Services : An Exploratory Empirical Analysis," Papers 111, Portsmouth University - Department of Economics.
  9. Samuel Cameron & Alan Collins, 2003. "Estimates of a Model of Male Participation in the Market for Female Heterosexual Prostitution Services," European Journal of Law and Economics, Springer, vol. 16(3), pages 271-288, November.
  10. 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.
  11. 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.
  12. 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.
  13. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Lee, Samuel & Persson, Petra, 2013. "Human Trafficking and Regulating Prostitution," Working Paper Series 996, Research Institute of Industrial Economics.
  4. Andreas Kotsadam & Niklas Jakobsson, 2014. "Shame on you, John! Laws, stigmatization, and the demand for sex," European Journal of Law and Economics, Springer, vol. 37(3), pages 393-404, June.
  5. Seo-Young Cho & Axel Dreher & Eric Neumayer, 2012. "Does Legalized Prostitution Increase Human Trafficking?," Economics of Security Working Paper Series 71, DIW Berlin, German Institute for Economic Research.
  6. Della Giusta, marina & Di Tommaso, Maria Laura & Jewell, Sarah L., 2014. "Stigma and Risky Behaviors among Clients of Prostitutes," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201419, University of Turin.
  7. Jakobsson, Niklas & Kotsadam, Andreas, 2009. "What explains attitudes toward prostitution?," Working Papers in Economics 349, University of Gothenburg, Department of Economics.
  8. 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.
  9. 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.
  10. 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.
  11. 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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