Prostitutes want to be where their customers can easily find them, so they tend to cluster in areas well-known to their clients much like stores do in shopping malls. Despite being called the oldest profession in the world, little is known about how this unique market works. A recent study sheds light on the business of selling sex in the city of Chicago and finds that it is much like any other business. The Price of a Trick The fee for a trick varies with the type of sex act, and prostitutes seem to discriminate across clients in order to maximize profit.
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Home Thought Leadership Chicago Booth The Economics of Prostitution The Economics of Prostitution Prostitutes want to be where their customers can easily find them, so they tend to cluster in areas well-known to their clients much like stores do in shopping malls.
By Chicago Booth. Most crimes involve a victim and a perpetrator. The perpetrator typically looks for his victim and the victim avoids the perpetrator as much as he can. The crime of prostitution, however, is quite different. Moreover, it is in the interest of both the prostitute and the client to do their best to find one another. As a result, prostitution operates just like a market: it is populated by buyers and sellers who mutually benefit when they come together to perform a transaction.
