Cheap Tricks … err, make that cheaper tricks.

Warning: Adult Content.

The Economist – a reputable publication — recently reported the results of a groundbreaking economic analysis.

Specifically, staffers “analysed 190,000 profiles of sex workers on an international review site … with data going back to 1999 … with prices corrected for inflation.”

What did they find?

“The most striking trend our analysis reveals is a drop in the average hourly rate of a prostitute in recent years”

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What explains the 30% drop in prices?

Well, pardon the pun, it’s pure economics …

 

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The price drop is largely attributable to 4 economic factors:

1. The Recession … since these services are relatively high-priced and discretionary, they’re subject to belt-tightening  during tough economic times.

2. Disintermediation … the internet has squeezed out some middlemen and an increasing number of service providers are direct-connecting with customers  and passing along some of the distribution savings to customers.

3 Low-priced competition … several markets have been deluged with immigrant workers who have a tendency to under-price their services compared to the established providers either because they lack market intelligence re: pricing or because they’re aiming for quick share gains.

4. The power of free … accordingly to the Economist, freer life styles are under-cutting the market and the professionals are having a hard time competing against more readily available “free” alternatives.

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The Economist observes that long-haired blonds with athletic builds have been most successful fending off the price pressures … and that price structures have evolved along the lines of the airlines’ model with added charges for specific services that used to part of the complete “bundle”.

For details on the ala carte pricing see the Economist article.

That’s where we’re drawing the line between economic analysis and prurient interests…

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