An Application of the Meta-Model

Abstract

In the previous chapter, two different models were developed and discussed: One based on rather simple intertemporal budget constraints and the other adapted from Sandmo (1981) and modified for our research question. In the following, we apply both models to the past, present, and – in Chapter 5 – future of the market for commercial sex. Here, the variables assumed to have the biggest influence on the market for prostitution services are discussed. We focus on explaining how the supply of commercial sex has changed over time. In Chapter 3, especially from equations 3.45, 3.48, as well as 3.75, we found that the probability of getting caught has a major influence on the amount of commercial sex supplied. The probability of getting caught is directly influenced by society and jurisdiction: A permitted action is less likely to be supervised by the police and curious neighbors.