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Who’s watching? The market for prostitution services

  • 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)

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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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
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  1. Richard Arnott & Joseph Stiglitz, 1991. "Equilibrium in Competitive Insurance Markets with Moral Hazard," NBER Working Papers 3588, National Bureau of Economic Research, Inc.
  2. 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.
  3. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  4. Collins, A. & Cameron, S. & Thew, N., 1998. "Prostitution Services : An Exploratory Empirical Analysis," Papers 111, Portsmouth University - Department of Economics.
  5. 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.
  6. Lena Edlund & Evelyn Korn, 2002. "A Theory of Prostitution," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 181-214, February.
  7. 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.
  8. repec:tpr:qjecon:v:94:y:1980:i:4:p:749-75 is not listed on IDEAS
  9. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  10. 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.).
  11. 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.
  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. 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.
  14. 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.
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