Commenting on Alex Dye’s post: Supply, Demand, – and Sex?

Prostitution is certainly an interesting market with many variables; not to mention the legal aspects. The economics of prostitution is truly staggering. Some transactions dig very deep into the top 1 percents pocket. Like Alex Dye said, the current economic instability has resulted in a decrease in demand for prostitution. However, I wouldn’t go so far as to say that newer industries could learn from prostitution to help counter the effects of economic despair. While prostitutes may be relatively luxurious in the eyes of most, many other markets have a much more inelastic demand. It’s difficult to truly understand the value of an illegal trade and it can be even more difficult to replicate their tactics of generating profit and revenue streams. The world of prostitution has very limited monetary costs which can’t be said for most industries. Furthermore, the decision making of a prostitute can be done much more quickly, thus their supply is much more elastic; making them able to adjust supply within short time constraints. Conversely, industries rely on other factors for supply, making it more difficult to adjust to market trends. Overall, the concept is interesting, but evaluating the decisions of a prostitute should not be a recommended way for a business in other industries to make changes.

 

https://blogs.ubc.ca/alexandradye/

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