"Will blow for a can of beans."

Well, maybe that song isn't exactly appropriate, but...

I think the question is extremely interesting, and something I've been pondering--on a much more elevated level, of course. I think the question is whether the Fed, et al., can keep us from tipping into absolute deflation--because we aren't there yet. Economists know what a deflationary spiral is, and it can set in very quickly and be almost impossible to emerge from in the short run, because none of the normal tools work.
If the tipping point is passed, then nearly all prices will fall, including pop (price of pussy). My prediction: until that point, prices of poon will remain flat--but service is going through the roof!

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FriscoJack

tav

For some, it won't make much difference if prices don't decline. Think of someone (just to pick names out of a hat) like Bill
Gates, Steve Jobs, or any big time hollywood celebrities. If they lose a few million here and there Would 300hr break the bank and
cause them to cut back? If an Escort has an existing client base of well to do clients the only issue will be that some Men will "wise up" and shop elsewhere for the same looks and skill set if service declines or they otherwise get bored. She'll need to be more fun and imaginative to keep that special spark going. People don't become wealthy by not recognizing good value for their $.

There are also Men who aren't going to be seriously affected by a higher unemployment. Retired gents with a good amount of savings and/or pensions are doing just fine, have homes fully paid off, kids grown, and minimal expenses.

Clearly the pool of Men who are still working and struggling to get by and already have limited income or become unemployed will cut back if things worsen, or *gasp* go out in the "real world" and actually talk to girls IN PERSON and FACE TO FACE.

In terms of P4P will the remaining pool of others be enough to sustain high rates? Probably not, or at least the existing top tier Escorts will still do fine.

We can read all day/night long about the existing unemployment rate and consumer spending... BUT ... When I saw huge ass fucking lines when the newest I-phone came out, and other dumb electronics that I personally see no real value in, you do have to wonder just how bad any situation is, or, and probably more to the point, if someone wants something bad enough they'll simply scrimp or cut out something else.

Ego and the fact that some girls think they are absolutely desireable since someone is willing to "actually" pay them will have a difficult time lowering rates until a majority of the herd starts the price reduction.

When we had "better" economic times (think go-go days of dot coms and venture capital firms sprouting like weeds on Sand Hill Road, prices didn't "increase" very much at all but remained at the average 250hr Escort rate. There were still a few saps that had no experience or knowledge and would see a horrific high rate and pay it thinking she must be good if she can advertise at that price, but that died quickly for most.

What is your view on what will happen given the scenario you described?

The prostitutes that have a solid stable of regulars might be OK , but as the economy worsens, even they will probably be amenable to a "recession discount" for their Regs.

Good luck and enjoy,
Lance

Now as someone pointed out in this thread, better than sex pros lowering their rate, are non-pros (single moms, students, etc...) looking for income coming out of the woodwork. I'd rather have sex with a non-pro, e.g. $200 for 2 hours, than pay a pro $200 for 1 hour (normal rate $300) any day!!!!

"[catlover is]...honest, and an asset to RB."
-ferdinand

Price is a function of Supply and Demand. Do you remember those curves in Freshman Micro where the Supply and Demand Curves shift in and out along the X axis based on underlying changes? And the intersect point would give you Price?

Well, imho, there is no reason to assume that Price Discovery is any different with the world's oldest profession?

Looking at Demand first, you could argue that in a period of sharp economic downturn, coupled with asset price declines (e.g. zero to negative inflation), there would be a reduction in the quantity of prospective users of RA services and the amount of disposable income they can commit to this passtime. What the correlation between these two factors and overall demand would be is hard to estimate (what a fascinating topic for a Ph.D thesis in economics!), but I readily accept the notion that demand would decline at a slower rate than overall economic activity. So you shift the Demand curve a little to the left...

Supply is the big difference here, imho, especially in this day and age of the internet, which allows not only much more efficient price discovery, but makes it so much easier (and less risky) for the provider to establish contact with the client. What I would foresee happening is a large new supply of non/semi pros using the internet to access a needed source of additional cash. From university students whose grants and loans are reduced, to struggling young adults, to mothers/housewives desperate to make the mortgage or medical payments, I believe that Supply would increase materially, and that many of these new entrants would be happy to on an infrequent basis (e.g. once or twice a week) and earn a couple of hundred dollars for 2-3 hours. They would constitute a significant source of new supply prepared to offer a product of variable quality (great to dreadful) at a significantly below market rate. And the internet makes it so much easier for them to access prospective clients. IMHO. many would not even bother with RB type sites, but would head for the SugarDaddy type sites, which would allow them a "go slow" start where they can meet prospects before committing to anything and then set up a relationship and schedule as it suits them. After all, they probably would be more than happy to net $1,500-$2,000 a month for two or three weekly appointments.

I therefore see a very considerable increase in supply, some of which would be providing at a high quality of service (SBs tend to have a lot less "rules" than RAs), which would materially fulfill demand from middle to upper echelon buyers. So there would be a significant shift in the Supply Curve to the left, thereby setting Price (the intersection of the Supply and Demand curves) at a lower point.

Ah! Supply Side Economics! If only Laffer and his gang had written a treatise on this particular market...

And fwiw, I have found that there are some wonderful SBs out there who provide both outstanding value for money and a great service. I fully accept that SBs aren't everyone's cup of tea, but remember, all you have to do is take some reaosnable amount (15%-30%?) of the demand out of the market to watch price move seriously downward (for those who haven't been watching the Real Estate Market for the past three years).

Anyway, my two cents worth...

Anerriphtho Kybos!

That said, prostitutes pricing would definitely decrease in such a Depression situation as outlined in the original post, since ego gives way to considerations of pure survival.

Client 69