ABSTRACT
Let subscript c denote variables related to clients. Let the potential number of clients (as well as the number of sex workers) be equal to 1. Until otherwise stated the model below describes the behaviour of a representative agent. Let:
S0c = sex enjoyed without buying, ‘freely exchanged sex’ Sc = amount of sex work bought Cc = ordinary consumption Ic = income beyond subsistence level Rc = capacity for reputation losses of the client when no sex work is
bought w = price of sex work
We assume that the total and exogenous income, Ic, is spent on ordinary consumption and sex. Freely exchanged sex is, by definition, free. We thus have that:
Cc = Ic −wSc. (1) Reputation is reduced when sex is bought in the market. We do not model the probability of being identified as a client and assume that when sex is bought it is also observed in the community. To make things simple we let the clients’ realisation for the potential reputation, denoted rc, be given by equation (2).
