Sign in to follow this  
Followers 0
Max Gentle

Prostitution Index

9 posts in this topic

Here's a piece from The Economist about the effect of economic factors on prostitution:

http://www.economist.com/blogs/freeexchange/2007/03/prostitution_index

Interesting, and thank you very much for the link! Did you have such a long wait in the dentist's waiting room that you read back to 2007?

Almost more interesting than the article, however, I'd say are the last two (long) comments, by Spairme and Mel58855. Spairme's ought to be printed on art paper, and rammed down HH's throat!

Edited by Irgendeiner

Share this post


Link to post
Share on other sites

Interesting, I'd never heard of a "Giffen good" before, although I recognise the description:

Named after Robert Giffen (1837-1910), a good for which demand increases as its price rises. But such goods may not exist in the real world.

I think such things do exist - think Bang & Olufson hifi, or those Vertu mobile phones; a large part of the appeal is the high price, signalling your wealth.

Share this post


Link to post
Share on other sites

There is no surprise that the Economist felt able to comment as shown. Prostitution is an intensly commercial activity. What marks it out from other activities of a commercial nature are the nature of the factors in the supply and demand for it which are, to say the least, "interesting".

Uncle Pokey

Share this post


Link to post
Share on other sites

Interesting, I'd never heard of a "Giffen good" before, although I recognise the description:

I think such things do exist - think Bang & Olufson hifi, or those Vertu mobile phones; a large part of the appeal is the high price, signalling your wealth.

Those are luxury goods not Giffen goods. The key feature of Giffen goods are they are inferior and there are no suitable low price substitutes. The classic examples of Giffen goods are staple food stuffs (rice/maze) in very poor countries. As the price of those rise, poor people can less afford premium food stuffs like meat, so they spend a larger proportion of their income/money on those staple food stuffs, despite the price rise. They are said to have negative price elasticity.

Edited by WykeTyke

Share this post


Link to post
Share on other sites

Here's a piece from The Economist about the effect of economic factors on prostitution:

http://www.economist.com/blogs/freeexchange/2007/03/prostitution_index

Interesting. By analogy will fewer UK WGs be touring Ireland in the coming year and that we shall have an influx of Irish WGs in the UK?

Spairme's ought to be printed on art paper, and rammed down HH's throat!

Alas it will do no good, for HH's objection is one of principle, based on emotion and impervious to facts. What is more, Spairme's points are sympathetic to elitism, which she won't like either. The only sort of brothel HH might approve of is one where, to fulfil equality law, WGs are randomly allocated to clients, irrespective of age, looks and dishevillment.....

Share this post


Link to post
Share on other sites

Those are luxury goods not Giffen goods. The key feature of Giffen goods are they are inferior and there are no suitable low price substitutes. The classic examples of Giffen goods are staple food stuffs (rice/maze) in very poor countries. As the price of those rise, poor people can less afford premium food stuffs like meat, so they spend a larger proportion of their income/money on those staple food stuffs, despite the price rise. They are said to have negative price elasticity.

From my memory of studing Economics at school and university, those goods like Bang & Olusfen hi-fi are examples of 'perverse demand' where demand rises as price expectations rise.

Share this post


Link to post
Share on other sites

Those are luxury goods not Giffen goods. The key feature of Giffen goods are they are inferior and there are no suitable low price substitutes. The classic examples of Giffen goods are staple food stuffs (rice/maze) in very poor countries. As the price of those rise, poor people can less afford premium food stuffs like meat, so they spend a larger proportion of their income/money on those staple food stuffs, despite the price rise. They are said to have negative price elasticity.

Well, you learn something new every day on PN! :)

Share this post


Link to post
Share on other sites

Interesting. By analogy will fewer UK WGs be touring Ireland in the coming year and that we shall have an influx of Irish WGs in the UK?

Well I for one say bring on the craic!

.

.

.

Thank you, I'll be here all week.

Tritium

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0