Is not going to change it into a Chateau Lafite Rothchild.
It's a known fact that some hookers charge all sorts of different rates for the same services. Remember our first Ms TER who was busted here for charging different rates under different hooker names? I bet you the guys who paid top dollar for Corrine were rather pissed off to find out that Julia would have sucked their dick for two hundred bucks less. Same woman, different rates. So much for "you get what you pay for" which is the common refrain from most HDH's Where the hell is Jack Dunphy when you need him?In the stock market we have the 'Efficient Market Hypothesis - EMH'
An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices.
___________________________________________________________________________________________
Do hooker prices reflect all known relevant information? Are hookers always at fair value
In the old days, most escorts were considered fungible and treated as commodities. And commodities markets are very efficient (a relative term) as per your definition. Recently, we have seen escorts marketing themselves as non-fungible luxury items and not commodities. Luxury markets are notoriously inefficient per your definition.
Think about big screen tvs. 10+ years ago they were luxury items and the pricing was whack. These days, they are commodities and the downward pressure on pricing is brutal on the suppliers. The opposite development occurred in the escort market. Back in the days of streetwalkers and brothels and phonebook ads escorts were treated as fungible and the downward pressure was huge and there wasn't a huge disparity in prices. Whereas today, you see a pretty much random distribution. And that is because escorts (and punters?) think of themselves as non-commodities and luxury items.
Interestingly, if one thinks that information is crucial to efficiency, they would expect the opposite to have occurred. Because we have seen an explosion of information about the escort market thanks to the internet and sites like our very own TER.
So no, the market isn't efficient. But that is due to the happy fact that escorts think more highly of themselves now. However, it is also pretty damn clear that the pricing is whack and needs to come down. Let's just say that while escorts are not essentially fungible, they are more fungible than they think or pretend. And if the punters internalized this, they could walk away from the crazy pricing and create a nice downward pressure.
Very thoughtful response. I've always looked at it as a fungible unregulated commodity market. IMO ,The reason for the market inefficiencies are the lapdogs who think they are buying rare gems. There is no scarcity in this market. Tall leggy brunette # 102 can be replaced by tall leggy brunette # 237. Big tit blonde # 34 can be replaced by big tit blonde #189 etc.
I honestly don't know if the pricing is whack. I do think that marketing gimmicks and ass kissing mongers have elevated hookers to a level that works against market efficiency.
There are still some commodified(?) areas of the market. The Eastern European/South American Agencies and the K-Girls have a pricing structure that is much more based on an assumption of fungibility. Though prices there are rising in the face of general economic malaise.
-- Modified on 9/22/2015 10:21:29 AM
I don't disagree with what you say. But the primary reason for inefficiency in the hobby market is that it remains illegal in most markets in the US. Because in the past prices may or may not have been more uniform doesn't mean there was an efficient market. Those uniform prices were themselves artificially elevated because the supply of willing providers and clients was effected by externalities -- legal risk and social stigma to name just two. The modern availability of informationhas had iits effect on the market. Superior methods of comparing relative values will change the uniformity of price in a market. But don't think that the market will ever be efficient so long as externalities continue to exist.
I have yet to see any evidence that legalizing prostitution would lower prices. The fact that it's illegal makes it an unregulated market.
Pricing has much more to do with the local economy than anything. Just use this country as an example, prices in NYC are much higher than out in cow country. It's no more legal in Texas than it is in NY or LA, but the average prices are a good 25-40% lower here.
She charges what she wants. It doesn't have to make sense, and trying to analyze it doesn't change the price. You pay what you want. End of story. But enjoy contemplating your navel.
Also bear in mind that most places in the world have legalized prostitution and the prices still reflect the local economy.
I see women advertising at a grand an hour that don't look a bit better, nor does their menu offer anything more than women at a third of that rate, and yet "some" of those women manage to keep a rather full dance card.
I guess it comes down to sex being equal parts friction and fantasy, convince a guy you are worth a grand an hour and to that guy at that moment that's what you are worth. Just don't try to convince some one like me that you are worth that much because that is simply not going to happen.
One other thing that you may have noticed, in places where prostitution is legal and out in the open there is not as much price disparity as we seem to find in this country. Yes, hotter women are in higher demand, and yes fuglies have to discount to get dates, but you don't see women advertising themselves as being "exclusive" and commanding five times the market rate in places where the hobby is legal.
That should have said aescetic.
But arguably, a case could be made for the former, but not by me.
(My alter ego, perhaps. )
That would seem to be a comparable fit. Stick with the lower price on a good value till the value is widely recognized in the market. The rate increases due to higher market desirability value (higher demand) and the value hobbyist goes back to the drawing board or TER in this case, to find a lower rate on good value/service.
Now from my end:
Whatever and however you think about it, we all have bills to pay and lives to lead, a monthly nut to crack (no, pun intended), goals we want to achieve, a financial future to plan for etc.
and my overhead just went up (rent, supplies, advertising, medical care) SO.....what to do, what to do!?! Lower my overhead and risk depreciating the value? Surely would become a downward spiral.
Dear Ms. Anderson:
Also a fair question would be where would you be located? And if you were to raise your prices how much will the market bare? I ask these two fundamental questions because depending where you are will dictate if you are in a white collar or a blue collar community. That also translates into how much disposable income your current and potential clients would have to interact with you. This leads me to my second question is how much will the market bare. This is a essential question because now if you raise it substantially will you eliminate your current client base. If so, will you change where you advertise so that you can attract those within a certain economic demographic so that you can sustain your business.
Finally are you going to grandfather in your regulars, so you can continue to retain the current client base? I ask this question because old business is just as critical as new business. Especially in communities that would be considered blue collar. Those customers would be the life blood of an adult companionship provider because she can consistently depend on that income. This would even be resonated in places like Houston or Austin to where there would be so many providers working as well. These are fair and real questions that should be persued even further for women on the providers only board.
I do and always have, considered the valuable and real points you make. That second and personal part of my post was my verbalization of my frustrations of recent rise in expenses.
My first and main point was in jest in the conversation based on the OP.
So, want to come over and play and forget about all that stuff? 
Hugs~
so comparing this market to the stock market is like apples and spaceships... forget oranges lol. For instance, some guys feel any escort above 25 and over 110 lbs. should not be charging over 250-300, but look at all the HDH crowd who gets double that and they are well into their late 30s... some mid 40s. If you have other means of income, you will never be a so called victim of the marekt. If you absolutely need to see 10 guys a week, every week at x rate to get by, well yes... you will have an issue because you have to conform to what that many guys are willing to pay you. Houston is a perfect example of a saturated market where the rates are kept down.
Great post, btw.
-- Modified on 9/22/2015 12:22:38 PM
Great post, btw.
-- Modified on 9/22/2015 12:22:38 PM
I tried some of the HDH types (1K+) when I first started internet mongering eight years ago. They were not any prettier or better service wise than the mid range girls or even a few from the old CL that were only $250.00. Of course I later found that some of them had ads as FBSM girls who gave massages with blowjob endings for $200.00. LOL
The buyers have no way of knowing for sure if the girl has other income or is using hooking as her sole source of income so that does not explain market inefficiencies.
You said " Great post, btw. "
Holy shit! Did I just get a compliment from London Rayne? I'm in a state of shock!
Agreed regarding the efficiency/sole source of income correlation, and you're right... has nothing to do with efficiency but everything to do with possibly why some rates are low and others are high which would add to your theory of the market being efficient or not in some areas.
Again, it's all about marketing in the HDH market as you said... no better or prettier, just a better package for allure to get the higher tag. If a guy is only looking for a quick bang, there is no shortage for sure of young, hot, cheap ass (Houston again), but those willing to pay more generally don't judge harshly on looks, want someone more mature and are seeking companionship of another level which (trust me) is a hell of a lot harder to deliver.
I have a friend I was explaining why a blow and go was cheaper than a GFE and he said, "Oh, so if she opens her mouth it's 200, but if I open mine (As if we have to listen to his problems lol) it's 400." Pretty much sums it up.
Great post, btw.
-- Modified on 9/22/2015 12:22:38 PM
Actually, the Efficient Market Hypothesis started with the stock market but can be applied to other markets so I did not mean to compare hooking to the stock market.
I tried some of the HDH types (1K+) when I first started internet mongering eight years ago. They were not any prettier or better service wise than the mid range girls or even a few from the old CL that were only $250.00. Of course I later found that some of them had ads as FBSM girls who gave massages with blowjob endings for $200.00. LOL
The buyers have no way of knowing for sure if the girl has other income or is using hooking as her sole source of income so that does not explain market inefficiencies.
You said " Great post, btw. "
Holy shit! Did I just get a compliment from London Rayne? I'm in a state of shock!
LR posted:
"Again, it's all about marketing in the HDH market as you said... no better or prettier, just a better package for allure to get the higher tag. If a guy is only looking for a quick bang, there is no shortage for sure of young, hot, cheap ass (Houston again), but those willing to pay more generally don't judge harshly on looks, want someone more mature and are seeking companionship of another level which (trust me) is a hell of a lot harder to deliver. "
============
I think other parts of the country have different less superficial standards than the Bay Area or Los Angeles. I've talked to two girls who were "Madams" in those areas. They both said the more a man pays, the higher the expectations in terms of looks and service.
I guess that there is a market for "companionship." I can only assume it exists because some men have no social circle. Personally I can't imagine a guy dropping a grand and not expecting a porn star or a DDG model type girl.
I have no doubt companionship is harder to do than fucking. The guys who value that over looks and service are probably looking more for a girl to unload their problems on than fucking. That means you become a psychiatrist. That's hard
We've probably all heard about the economics experiment where people thought wine tasted better based on price? The average consumer is better off buying a cheap bottle of wine, and in fact they actually slightly preferred cheap wine! The caveat to that study (and one rarely noted in the news) is that this didn't apply to experts; there was a positive correlation between price and enjoyment. While the experts usually preferred more expensive wines, it's also known that their ratings are not consistent; one day they may give out an 86 and another a 94, which you oenophiles out there know puts those in rather different categories. Experts can also be fooled by label switching.
To me, it seems like similar elements play out in this biz. For some ladies, the value may simply be marketing. With others, the value may genuinely be there, but even so, some of the nuances that contribute to that value are things that some men could care less about. Some men just want a fun release while others want an experience.
As for variability in the rates, the price a lady charges is usually a combination of how she sees herself, local market pricing, and how busy she is/wants to be. Maybe she's great at marketing (or subpar at it), so her demand is based on her advertising skills rather than what she provides, and thus her price isn't a true reflection of her value. Ladies also are sometimes guilty of under- or overvaluing their skills and looks.
I'm sure that those who say they have great experiences with lower priced girls have been lucky enough (or with research, savvy enough) to find ladies that are priced under their true market value, or they don't care about those elements that might make some ladies genuinely worth more to other men.
edit reason: grammatical error
-- Modified on 9/22/2015 10:40:51 AM
tautological arguments, ie what proves something as valuable is that it sells for more, ergo it is worth more (Until it doesn't. )
I just had a taste of that this AM at a seminar where a speaker on leadership and management found that the most successful leaders were also the ones who ranked highest as leaders.
What criteria do you suppose they used for that?
Yes, that is the problem, isn't it? Much of "value" is based on subjective, wishy-washy criteria. I like objective and consistent criteria, but I don't think it's possible to have that for shared intimate experiences. Sometimes there are intangibles that add so much to an encounter, but one can't even find words to describe them.
Also, another factor to consider is risk....
In my wine analogy, I personally try to ignore ratings and price and go by what makes my taste buds happy; I'd hate to be in the category that thinks something is good based on the label and not the contents. I think I'm mostly successful with this; one of my atf wines is an inexpensive wine that pairs scrumptiously with much of the food I cook; it's a red from the south of France that that some critics pan as being too simple while others rank it as a top value wine. However, I think my favorite is an exception; mostly, I find there is a positive price/enjoyment correlation for my tastes. I am willing to experiment, though, with the inexpensive wines because my out-of-pocket cost is very small, and my risk/reward ratio is great. If it cost $250 to experiment instead, I would probably go with a safer, more expensive pick, and an intimate experience gone bad is a lot worse than pouring a bottle of cheap wine down the drain.
Even with wine there must be a price point where you reach diminishing returns. It happens in almost every area of life.
You can buy fine German luxury cars for 100k or so. You could also drop around 500K on a Rolls. Would the Rolls really be five times the car that a fine German car is? Is it even a better car?
If you pay $800 is she twice as hot or twice as good in bed as the $400 girl? Value buyers are not to be confused with "bang for the buck" types who only care about price.
A value buyer will keep spending until reaching diminishing returns. I think it's hard to come up with a totally objective criteria for hookers. Still, you can come up with some formula that works. As a general rule (based on area) it rarely pays to go above the $300-$500 price range. Above $500 most any girl will represent diminishing returns to any experienced monger.
That was the reason for the "efficient market" question
A car has residual value. A hooker is just like a bottle of wine, you savor it, you taste it, you enjoy it over a period of an hour or so and at the end all you have is a memory. Is the experience of drinking a thousand dollar bottle of wine really worth as much to you as perhaps drinking two bottles of a five hundred dollar wine, or three bottles of a three hundred dollar vintage, with money left over for snacks? lol
Guys are free to spend what they want and women are free to charge what they want, but I am no more likely to spend a grand for an hour with a hooker, any hooker, than I am to blow a grand on a thousand dollar bottle of wine.
Great memories are life's ultimate reward.
Is not going to change it into a Chateau Lafite Rothchild.
It's a known fact that some hookers charge all sorts of different rates for the same services. Remember our first Ms TER who was busted here for charging different rates under different hooker names? I bet you the guys who paid top dollar for Corrine were rather pissed off to find out that Julia would have sucked their dick for two hundred bucks less. Same woman, different rates. So much for "you get what you pay for" which is the common refrain from most HDH's
Where the hell is Jack Dunphy when you need him?
price means nothing to them... if they want you, they pay...there are girls in Nevada brothels that charge $3000+ an hour....as in the stock market ...a savy investor takes advantage of every opportunity to make money...
there is no efficiency and it is possible to beat the market simply avoiding bad days. Since early August for example cash, the dollar and bonds outperformed the stock market, and most likely will continue until the evidence, supply demand dictates otherwise.
An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices.
___________________________________________________________________________________________
Do hooker prices reflect all known relevant information? Are hookers always at fair value?