Prostitution: The Partial Differential Equation

Prostitution, as you know, is difficult to understand. Why do people do it? Some might say it has to do with money and gender and — I’m going out on a limb here — sex. Economists apparently have been looking at those first two factors. But now, some naysayers — a team of three European […]

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Prostitution, as you know, is difficult to understand. Why do people do it? Some might say it has to do with money and gender and -- I'm going out on a limb here -- sex.

Economists apparently have been looking at those first two factors. But now, some naysayers -- a team of three European economists -- say stigma and reputation are major players:

The whole situation, seemingly so complicated, boils down to a nicepartial differential equation. Here it is -- ... rule of thumb for prostitutes. You, a prostitute, find itworthwhile to sell your services when:

[(δU/δL) / (δU/δC) | Sp=0] ≤ w - [(δU/δr) / (δU/δC) | S = 0]

Or, to put it in another simple and easy-to-understand way: "An individual will start to sell prostitution if the price for sellingthe first amount of prostitution, minus the costs of a worsenedreputation for doing so, exceeds the shadow price of leisure evaluatedat zero prostitution sold."

We're looking forward to an in-depth analysis of the complex economic factors underlying the words "Hey, honey, how much?"

Out of the equation [Guardian]