Thai pussy economics is applied on the sex supply and demand market in Thailand. Thai pussy economics does not follow general economic theory. It has been observed to lack fundamental logic and set to confuse customers from developed countries. The Thailand sex industry has been operating for decades and its sustainability can be analyzed considering economics that govern buying and selling behavior. These include (sex and substitutes): quantity supplied, quantity demanded and the price at which the services are sold.

The quantity of Thai pussy demanded by consumers does not rely solely on price. Other factors that affect the quantity of available sex workers depends on the level of consumers’ income and the price of other goods and services. Some goods and services may include the alcohol consumption quantity, short time room cost and other entertainment. Sexual services performed by less attractive women and ladyboys are derivatives or Thai pussy and are not included in the definition of other goods and services. Instead these are product substitutes and measured as inferior or superior products and services and consumers demand can be measured with utility and elasticity.

An example of the demand function over a period of time is:

QDTP = ƒ (PTP, I, POGS)

The quantity demanded for Thai pussy equals the function of the price, income and the price of other goods and services.

The quantity of sex demanded by consumers is a function of its price. Different values of income and the price of other goods and services results in different demand functions for each consumer. For example an increase in the alcohol price may result in a decrease in the quantity demanded of alcohol and an increase in the quantity demanded for sex. However a decrease in the level of income may decrease that consumer’s demand for both sex and alcohol. The consumer could allocate their appropriated funds to purchase other goods and services.

Ladyboy Posing with Big Ass in Walking Street Pattaya

Ladyboy with a big ass posing for the camera in Walking Street Pattaya.

Substitution for other sexual services with older or less attractive women and ladyboys may prove to be more affordable. Less utility (enjoyment) is gained and the service is cheaper leading to an increase in the consumers demand for inferior goods and services. The law of demand states quantity demanded by consumers for normal goods and services increases at lower prices. However an increase of income will decrease demand for inferior products and shift demand to superior products. Thai pussy economics may define unattractive women and ladyboys as the (inferior) product. An example of a shift to a superior product may be consumers demanding sex from women with white skin (determined higher social class) than women with dark skin (perceived lower class farmer generation).

The quantity of available sex in the market is a function of its selling price. Factors that determine the supply of Thai pussy may include: alternate employment opportunities, cost of living and completed education levels. For example uneducated individuals in low income brackets may be lured to participate in the prostitution industry as a substitute to farm or factory work. Prostitution therefore enables some people to achieve significant wealth gain compared to the low salary of a traditional job. The law of supply states as the market price of sex increases through inflationary pressures so does the supply of prostitutes to work in the industry.

Men and women are drawn from low income regions of Thailand to the entertainment zones of Bangkok, Pattaya and Phuket to engage in the prostitution industry. Accumulated funds are remitted back to the homes of Thai families and responses to the sex workers occupations are viewed with ignorance. An example of hypocrisy is to label these individuals and party locations in a negative way, yet encourage the practice and exploitation of family members when wealth is achieved.

Russian Dancer at Galaxy Walking Street Pattaya

Pattaya has attracted prostitutes from other countries to work in the sex industry.

We can assume the following by combining the level of supply, demand and price of sex. A decrease in consumption is reduced demand. There is an excess supply of available prostitutes and the market price should decrease to the new equilibrium level. The effect during high season results in a temporary spike (increase) in demand putting upward pressure on prices. The opportunity is identified and the supply of prostitutes increases and there is more competition in the market. Thai girls at beer bars, gogos and discos determine high season entitles them to double their usual cost for supplying sex or they may wait until a more desirable customer approaches them for sex and still quote a rate above the normal market equilibrium price.

Economics of sex reaches equilibrium when the quantity supplied equals the quantity demanded. The market determines price and there are no dead-weight loses from excess supply or excess demand. Thai pussy economics does not demonstrate equilibrium pricing when comparing low and high season visitors to Thailand. Instead the price of sex remains above the natural market level (demand pull inflation) in the low season as demand declines.

The supply of sex decreases as prostitutes complain of the low season effect, leave the city and pack their bags to return home. Some girls remain working as prostitutes, but complain, “no have customer” or “farang stingy”, and are stubborn to accept their asking prices for sexual services are too high and they are not appealing to customers. The negative attitude drives away customers to other sex workers who are more accommodating and offer more value.

Beer Bar Girls in Walking Street Pattaya

Bar girls working at beer bars in Walking Street Pattaya with few customers during the low season.

The correct application in a response to a decrease in demand is to accept the new market equilibrium price by adjusting and lowering the prices of sex and similar services. It remains that consumers in the market compete for available goods on the basis of price only. Market forces will drive the price up or down to the equilibrium value.

There are times in Thai pussy economics when the supply is inefficient. If supply exceeds demand at the current asking price, then Thai girls sit idle waiting for consumers and competition by bidding sex tourists puts downward pressure on prices. The supply and demand should adjust until new equilibrium prices are reached. This is correct if the equilibrium is in a stable state. However, the prices are bid up to an unsustainable level during high season and gets further away from the new equilibrium low season price. The low season equilibrium price is rarely struck, the market price of sex remains inflated and dead-weight inefficiencies exist.

Thai Girls in Beer Bar on 2nd Road Pattaya

Thai girls have found work in beer bars for the opportunity of higher income.

The spot price for sexual services in Thailand is generally struck following a descending price mechanism (initiated by the sex worker) or ascending price bidding (initiated by the consumer). The supplier often starts at a high price and slowly reduces until a bidder agrees to pay. The process repeats for additional consumers. The private bidding process involves one consumer at a time and the market price may not equal the value perceived of the consumer. Services are usually quoted in massage parlors at double the market rate and descend until the price is agreed. However soapy massage parlors have a fixed price for full service and the only negotiation by the consumer is selecting the masseuse. The struck price can result in a consumer surplus. Usually the consumer will leave without procuring sexual services is the price is above their maximum.

The consumer surplus in supply and demand is the difference between the price paid by the consumer and the price they were actually willing to pay for services. To demonstrate a short time cost 500 Baht and the consumer was prepared to pay 800 Baht. The consumer surplus is 300 baht. The prostitute could have held out and agreed on a higher price, but risked losing the sale. Note the consumer gains the most utility (enjoyment) from the first unit of consumption and may be only willing to spend 600 Baht for an additional short time. This is the diminishing rate of marginal utility as each additional unit of sex consumed in a given time frame yields less consumer surplus.

Fuck My Ass Bar Girls in Soi 6 Pattaya

Thai bar girls in Soi 6 Pattaya using marketing material to find customers. (Reference sign: f*** my ass).

Price controls add obstacles to efficient market prices of sex, increase the equilibrium price and reduces quantity. Beer bars demonstrate a well referenced example to impose a cost on consumers (bar fine) to allow Thai bar girls to leave the venue. An average bar fine price (beer bar) is 350 Baht. Add the cost of a short time room 300 Baht and the payment for sex 1,000 Baht and the total cost is 1,650 Baht. Greater consumer surplus can be achieved, assuming comparable utility, if the consumer was able to avoid this price control. The cost of a bar fine for dancers in gogos can cost up to 1,500 Baht. The price difference may not be due to an increase in quality either.

Consumers looking to improve their surplus may choose to use their own apartment to eliminate the short time cost. Find a prostitute in a public place to eliminate the bar fine. However the extra fees are necessary to maintain discretion for consumers in relationships with other men and women. It also leads to gossip and long term residents prefer to avoid this. It’s more suitable for short term tourists to use their hotels as they are soon gone from Thailand and gossip is short lived.

Walking Street Gogos - Sensations and Iron

Walking Street Pattaya is full of gogos offering beer, Thai girls and ladyboys.

Consumers who are deterred to pay bar fines are likely to reduce demand for these bar girls and dancers. Gogo dancers have switched their business strategy to selling lady drinks instead of their bodies. A lady drink costs around 150 Baht and the time it takes to drink a shot of liquor can last a few seconds and yield only a few minutes of companionship. The cost is smaller and incremental because multiple units may be ordered. Under this strategy the venue may impose a quota on the girls to compensate for the loss of revenue of bar fines. Dancers would need to obtain a specified quantity of drinks per month to avoid financial penalty, loss of salary. Gogos are more inclined to offer greater benefits for girls to remain at work by offering higher salaries and commissions for drinks sold. Unfortunately this has resulted in scams where the girls are consuming low or non alcoholic drinks.

Venues with fixed prices for sex can both add and subtract value to consumers. Competition leaves less attractive prostitutes with few consumers and attractive prostitutes in excess demand. Consumers may have to wait in lines as a result of a single price payment that includes; the bar fine, short time room and sex worker. Alternatively the seller reduces the quality of the service because they believe they are worth more.

“You come, I go”, meaning after the consumer has finished up, the girls are quick to leave the room and back to work. The event can last less than 10 minutes, yet the fee for the experience could have been better invested on a long time (all night) service to yield more surplus. The consumer (punter) faces a gamble each time they set out to seek sex and measure the value given to them.

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Leave a replyComments (4)
  1. Dave March 4, 2016 at 9:11 AM

    I love the Econ 101 from the Adam Smith point of view look at the P4P game in Patts. Though What are your thoughts that inflation due to increasing popularity of Pattaya and desire by many to “Clean up” Pattaya with landlords raising rents and only offering short term leases to our favorite businesses?

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    • PTB March 9, 2016 at 8:12 PM

      Thank you for your question. If increasing popularity led to more men and women looking for sex in Pattaya and the supply of prostitutes remained unchanged, then the demand curve will move outward and the new price equilibrium will be higher. Raising rents add to the cost of doing business either in the form of production costs or a tax. Either will reduce the profits to sex workers at the stable equilibrium price. Both could lead to a sex price increase and other inefficiencies such as the dead weight losses, substitution for other services and or reduction in quality. In summary the situations would likely result in a reduction of value to consumers and could result in a reduction in Pattaya’s popularity.

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  2. Chupacabras May 11, 2016 at 10:33 AM

    Her disdain is deeply rooted in painful events of the past that resulted in the half-Thai, half-American boy who now hungers for the beautiful farangs circulating through their hotel. His unrequited affections further illustrate the disparity between farangs and the Thai they patronize.

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  3. Harry May 6, 2017 at 7:21 AM

    Authorities rather than punishing officials and other traffickers, has wrongfully arrested and deported hundreds of Burmese victims in the past, in clear violation of Thailand’s obligations under national and international law. Globally, an estimated 27 million human beings are trafficked and exploited as forced or bonded laborers in factories, fisheries, fields, streets and brothels as part of a business that is raking in more than $30 billion in profits annually, according to the Far Eastern Economic Review.

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