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[QUOTE=Chochem]From a theoretical economics perspective, there is actually a pretty good rationale for this pricing structure.

Let's assume a provider was previously at 250 and 150. There is a range of prices that mongers can afford. When times get tight, those that have been affected the most may no longer be able to afford this provider at those rates. So, by dropping her HH rate may still allow the provider to keep some of those clients that would otherwise disappear.

At the higher end, guys who otherwise might have gone for the full hour may still choose to see the provider if they cannot afford the higher rate, but can choose to save money by going for a 30 minute session. The provider loses something, but still has some income. If the provider drops the full hour rate, then she will keep some of these clients at the full hour rate rather than at the lower 30 minute rate. However, this could be very costly. The number of guys that can afford 200 but not 250 is probably pretty low. Most that can afford 200 probably can still afford 250. So, if the provider drops the hour rate to 200, then she loses 50 on every one of her hour clients.

Here is a hypothetical example. I'm going to keep the math easy and ignore the customers who previously were at 30 minutes for this example. Let's assume that the provider normally sees 10 clients a week for a full hour. Let's now assume that, due to the economy, 4 of her hourly clients cannot afford that any longer. 2 of them have to drop the hobby completely and the other 2 can afford something less expensive.

Prior to the recession, she earned 2500 weekly from these clients. Let's assume that she drops her HH rate to 125 and her hourly rate to 200. This allows her to keep all of her hourly customers that are still in the hobby. She now earns 8*200 for a total of 1600 weekly.

If she drops only here 30 minute rate, then 2 of her clients will opt for the half and the other 6 that are still in the hobby will remain at the full hour. Now she earns 6*250 plus 2*125 for a total of 1750 weekly.

This example shows that by dropping the top rate, she actually loses money even though she gets more full hour clients. The trick is that it is hard for her to drop the rate only for those that cannot afford 250. Some get around this by running periodic specials. So, for most of the time, they still get their full amount, but then pick up some extra lower cost business during specials.

I know that this is purely theoretical, and I certainly don't think that most providers are going through it in this level of detail. But, I think that they intuitively understand their market and make pricing decisions that maximize their income.

I[/QUOTE]
You should be working for the government to get the economy going again! In your example above by dropping her low rate from 150 to 125 she might also pick up a couple new clients to replace the 2 who left the hobby so maybe she can add another 2 x 125 or 250 to her 1750 for a total of 2000. If she is willing to do a few 75 or 100 quickies she might even be able to get back to her 2500 pre-recession earnings. We all have to work a little harder in this economy to make money.

[QUOTE=Haldol05]SO this girl is posting on backpage and CL #407-209-4226, cant find any info or research turns up nothin'. I'd come off 250, even in this economy for greek, lol, emails were not returned from her.

Any help is appreciated.[/QUOTE]

the 2nd and 3rd pics you posted "blonde.jpg" and "blondee.jpg" I have seen on CL lately...I usually surf CL at least 3x a week and just started seeing those pics, look tgtbt but I may toftt if ykwim lol @ the excess abbreviations some posters use in other forums, even for non-suggestive phrases.

I may check out this girl on a day I have alot of free time, but I will need at least 2 backup girls - 1 backup for the tgtbt girl, and a backup for that backup.

[QUOTE=Clinton Bush]You should be working for the government to get the economy going again! In your example above by dropping her low rate from 150 to 125 she might also pick up a couple new clients to replace the 2 who left the hobby so maybe she can add another 2 x 125 or 250 to her 1750 for a total of 2000. If she is willing to do a few 75 or 100 quickies she might even be able to get back to her 2500 pre-recession earnings. We all have to work a little harder in this economy to make money.[/QUOTE]No he can't work the goverment he makes to much sense.

LOL

[QUOTE=Clinton Bush]You should be working for the government to get the economy going again! In your example above by dropping her low rate from 150 to 125 she might also pick up a couple new clients to replace the 2 who left the hobby so maybe she can add another 2 x 125 or 250 to her 1750 for a total of 2000. If she is willing to do a few 75 or 100 quickies she might even be able to get back to her 2500 pre-recession earnings. We all have to work a little harder in this economy to make money.[/QUOTE]I think your are 100% correct.

In economics, there is a concept called Demand Elasticity. When demand is inelastic, it means that changes in price don't affect demand much. When demand is elastic, it means that changes in price do affect demand considerably. My theory is that, at the low end of the price range, escort demand is elastic. There are hobbyists that will pay 100, but not 150 or who will pay 50 but not 100. This is why there is always demand at the street level.

On the other hand, I think that demand is more inelastic at the higher price levels. Most guys that are willing to spend 200 will still spend 250 for good service. Probably jjust about anyone that is willing to spend 300 will go to 350 for the right escort.

So, at the low end of the price range, providers make more money with lower rates, at least to a point. But, at the higher price levels, they may do better by keeping their rates where they have been.

I still think, however, that the best overall strategy may be to keep the rates high at most time, but also to offer occasional specials for repeat clients to ensure that they do not defect. I, of course, make this suggestion completely objectively and without regard to the effect that those occasional specials might have on my own wallet

You know, someone out there who is earning a masters degree in econmics should do a thesis on this. Think of how much fun the research would be!

[QUOTE=Haldol05]SO this girl is posting on backpage and CL #407-209-4226, cant find any info or research turns up nothin'. I'd come off 250, even in this economy for greek, lol, emails were not returned from her.

Any help is appreciated.[/QUOTE]

"blonde.jpg" is using the phone #4074705+85+0 and something about the ad strikes some similarity to the other number you posted...can't quite put my finger in it (and don't think I want to) but something smells extremely fishy about the ads using those 2 #'s.

Not sure what happened but it's back up.

[QUOTE=Orlando J]Your site is unavailable.[/QUOTE]

Thought about seeing Catherine for a while, so I did research on another website. Found one bad revew after another. I had figured that she had been around for a while and had to be a sure thing. Glad I looked before I jumped!

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[QUOTE=Chochem]I think your are 100% correct.

In economics, there is a concept called Demand Elasticity. When demand is inelastic, it means that changes in price don't affect demand much. When demand is elastic, it means that changes in price do affect demand considerably. My theory is that, at the low end of the price range, escort demand is elastic. There are hobbyists that will pay 100, but not 150 or who will pay 50 but not 100. This is why there is always demand at the street level.

On the other hand, I think that demand is more inelastic at the higher price levels. Most guys that are willing to spend 200 will still spend 250 for good service. Probably jjust about anyone that is willing to spend 300 will go to 350 for the right escort.

So, at the low end of the price range, providers make more money with lower rates, at least to a point. But, at the higher price levels, they may do better by keeping their rates where they have been.

I still think, however, that the best overall strategy may be to keep the rates high at most time, but also to offer occasional specials for repeat clients to ensure that they do not defect. I, of course, make this suggestion completely objectively and without regard to the effect that those occasional specials might have on my own wallet

You know, someone out there who is earning a masters degree in econmics should do a thesis on this. Think of how much fun the research would be! [/QUOTE]I don't know if I agree about 200 vs 250. Market participants make decisions at the margins.

There is perfect competition in this market with no barriers to entry and highly visible pricing, so in theory providers will always end up pricing to the market where marginal revenue equals marginal cost in order to maximize revenue. Right? That's 101.

So market demand always dictates pricing right? But it's especially true in markets like this. Each provider will adjust pricing in response to the market demand curve as they perceive it, in order to seek to maximize revenue. So discussing varying pricing strategies is interesting but ultimately I believe that they're less discretionary than you might think on a first take.

Another interesting factor is that there are almost no explicit costs; it's just opportunity cost and risk premiums. And somehow even hookers can understand that concept for the most part. So you'd think that if you're in the right place at the right time and a girl doesn't have any other prospects you could get a great deal on some quality tail.

Also there are widely varying labor-leisure decisions, depending on the lifestyles of the providers. That's why you see so much disparate pricing from seemingly similar girls. Even though it's obvious that they can all see each others' ads.

Keep in mind that providers are easily able to use first-degree price discrimination, which is a huge factor given how unbelievably high the wide variety of risks associated with providing these services are.

And those adjusted prices, extended to repeat customers are much less observable than advertised prices or even reported on prices. This also makes sense as the demand curve as well as the supply curve for repeats is different than for first time visits.

How many girls have $200 for a complete stranger who could be a psycho or a cop than $150 from a guy you've already seen 3 times before?

If you're interested in economic research on black markets, there's a guy out of the University of Chicago who studies them and has gotten some press recently given the implications of the recession. Google it. It's pretty cool.

OP

Op, You make a good point about first degree price discrimination. This, however, cannot be done in the advertising. While I have no direct experience, you may very well be correct that some escorts are providing discounts to their regulars while keeping the advertised prices high.

In general, I agree that the barriers to entry are low. However, I do not agree with you about perfect competition. Perfect competition assumes that the products available from the different suppliers are comparable. I think that we can all agree that there is a huge difference in the quality of escorts out there. The flip side of your $150 for a known customer versus $200 for a psycho is the hobbyist choosing $250 for a known GFE/PSE versus $150 for a overweight butterface that just lies there and complains when you take more than 5 minutes to finish.

I'm guessing that the economist you are talking about is the guy the wrote Freakonomics. I'll have to look that up. He's good reading.

[url]http://www.forbes.com/forbes/2009/0413/020-economy-education-ideas-opinions.html[/url]

Yeah, I guess it is the freakonomics guy.

I think you've got me on differentiation in the marketplace; it just seems like there's so many sellers that they end up competing on price.

It's a good point you bring up about review boards and how they're reducing the amount of informational assymetry in the marketplace. I'm sure it used to be that it was like buying a car where they would just get you for whatever they thought they could get.

I think that it is just rude to say you get worse service from a lower priced girl that an overpriced escort. I have read this board and many others for years and there are many men who ***** about an escort but like the 5 star hotel or clean safe incall and the surrondings, fake boobs, lipo, designer clothes or make up whatever the girls spend money on then turn around in less than a month brag about banging a streetwalker in a no tell motel for $40 for a half hour. That just kills me. How can you go from one extreme to the other. You might as well go see a PSE then go home and talk sweet to the wife. To each his own. I have never gave less qaulity to one person or another because of the money involved. It is a connection (that is not always there) and how you treat them (if you treat her like a lady or a peice of ass). I have never fit the mold for a typical girl and I never will. Some actually care that you enjoy yourself. So use general concepts lightly. I know some of my friends better than other because we have spent more time together. Hell some of us have became friends and talk about our life. I would never say that all providers are the same and I would never say that all mongers are the same. But I am not every woman, I am just me.

I definatly agree 100 percent. It is about a connection and sometimes thats just not there. Also I have made lifelong friends with some of my clients even if we no long hook up if you will. These are guys I would call if I needed advice, a shoulder to cry on or a good belly laugh. Unfortunatly not all guys monger for the same reasons there are some that go out of their way to make you feel less than but they are among a very small percentage. I, too don't fit the mold and don't wanna. I rather be a warm and geniune experience than just a portal for pleasure [in actuality how pleasing is that?

Life does not give us what we want when want or with the ones we want. There is always something messing. It has never been perfect. At the moment of happiness we question if this happiness is gonna last or we fear that it comes with a tax. Our happiness is not complete.
I thought I have had friends but life needs are stonger. The ones we love do not love us back while the ones that love us we do not love them.
Life! Sorry guys I had to get it out of my system.

There are different types of females in the adult entertainment industry.

Ones that don't care about reviews or a reputation, they are in it for a quick fix for any given situation, I refer to them as "fly by nights".

Then their are females who depend on their reputation. In a recession it causes in any business, the cream of the crop to rise to the top.

With more women seeking escorting to supplement their income temporarily. Quality will be the foremost factor in those that can withstand the recession.

Escorts and their clients have many types of relationships. While some men are in it simply for the excitement, some men are filling a void. Sometimes the companionship factor is important. These men need someone to talk to, a unbiased opinion or simply some time away from a turbulent home life to relax. With a good provider it can be a sweet escape.

We do develop a level of relationship with these men. After time you become more evolved than simple chatter. I appreciate the men having families or not that simply took the time to text me and say "Happy Mothers Day". It's simple little things two people can do for each other just to show your appreciation even though it is a business.

Perhaps when the economy was different price could reflect quality better, but in these times. Quality is not necessarily reflected by price.

There are some wonderful ladies out there who choose to charge a lower amount and there are some not-so-wonderful ladies who try to get $$$$ and provide awful service in return. I was only suggesting the following:

-All providers are not the same. The quality of service varies. The menu of services available varies. The age, appearance, and attitude varies.

-As a result of this, a hobbyist may choose to go with a more expensive known provider than an unknown inexpensive provider.

I have certain qualities, both tangible intangible that look for. As was previously mentioned, sometimes it's just a matter of who "clicks". We all have had the YMMV experience. I'm sure that the same occurs on the provider side. One escort may think that a certain hobbyist is great and another may not like him at all.

In a nutshell, I was saying that this market really doesn't have perfect competition. Perfect competition requires comparable products/services and a free flow of information between buyers and sellers. The typical example is a corner with 4 gas station. All have basically the same product and the customer can see the prices of all 4 at the same time. In that situation, none of the gas stations can charge a higher price than the others without losing a whole lot of business.

I think we can all agree that this market is different. There is a wide variation in the marketplace from one escort to another. In part, due to legal issues, it is difficult for escorts and hobbyists to freely exchange information. My example of the high priced quality provider versus the low priced bad provider was just that, an example. It was not meant to suggest that this is necessarily the norm.

I think that this discussion has gotten to be way to technical. It's largelly my fault and I'm going shut up now.

I apologize if I offended anyone.