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Ask an Escort -- Freakonomics

Yosemite Sam

New Member
Jul 9, 2005
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Interesting Q&A with an escort on the Freakonomics blog:

http://freakonomics.blogs.nytimes.c...club-allie-the-escort-answers-your-questions/

Also the book excerpt on escorting:

http://freakonomics.blogs.nytimes.c...ask-allie-the-escort-about-her-work-and-life/

Particularly interesting is that she found that her business didn't decrease when she raised her prices, and that she had less sex per appointment at higher prices. This might give some insight to those who ask that question we see frequently here: "What makes her think she's worth that much? Last year she was charging $___ less".
 

The Snark

Member
Feb 24, 2005
199
10
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This makes sense to me intuitively. To put it in economic jargon,
(a) demand for escorts is fairly inelastic--partly because they are a luxury good, clients are willing to spend a good deal of money on escorts regardless of price
(b) the escorting business is characterised by a backward-bending supply curve of labour (insert pun here)--meaning that once they reach a certain level of income, escorts would rather work less than increase their client base
 

Jman47

Red Sox Nation
Jan 28, 2009
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Top of the day to you Yosemite.

This woman sounded relatively intelligent in her answers and the way in which she handled her business. I don't think it is a big secret that the name of the game is all about doing less and getting more (that goes for any business). Also know as profit maximization. In the business in question increased rates can sustain the demand and income curves if the lady markets herself well, has a good reputation and finds the "right" clients. Then she markets to those clients and like clients and differentiates herself in the market. What was not mentioned here was the "grandfathering" of old rates for existing clients which is a prevalent practice when a lady raises her rates.

Working smarter always trumps working harder. Its just not always possible and one could argue the two things often go hand in hand.

Have fun.

Jman47
 
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