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Who is watching? The market for prostitution services
Authors:Marina Della Giusta  Maria Laura Di Tommaso  Steinar Strøm
Institution:(1) Department of Economics, School of Business, University of Reading, Whiteknights, P.O. Box 218, Reading, RG6 6AA, UK;(2) Department of Economics, University of Turin, via Po 53, Turin, 10124, Italy;(3) CHILD, via Po 53, Turin, 10124, Italy;(4) Department of Economics, University of Oslo, Blindern, P.O. Box 1095, 0317 Oslo, Norway
Abstract:This paper presents an economic model of prostitution that 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 of stigma and reputation effects to 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.
Keywords:Prostitution  Gender  Reputation
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