Monday, November 12, 2007
I suspect something else is at play here, too. There is substantial value to the brothel from repeat business; the service that is sold puts the service provider at risk of physical harm. Once the madam establishes that the customer desires only the services contracted -- no funny stuff, nothing violent -- and that the customer is clean of communicable diseases, the cost of providing service is lower. The supply curve for the repeat customer is therefore greater than it would be to the stranger, and so the price is lower. If I am right, escort services may also have this type of pricing.
- Prostitution was not illegal, so Gabriel argues you possible could get contract enforcement. So lending to the brothel operator might not be any more risky than lending through a pre-paid card to any other firm.l
- Service was available on weekend mornings; he notes there's a reference to something like "crowding".
- The cards specified place and service provider.