What was slated to be the world’s first brothel for women has been put on hold in New Zealand.  The reasons are murky but here’s one tangential item:

At the time of the launch, Corkery claimed that hundreds of men had applied to be $240-an-hour gigolos and satisfy the demands of Kiwi women wanting sex.

No surprises there!  NZ$240 = US$200 (approximately.)  Your first reaction is that the market clearing price must be much lower than that, possibly negative. But demand is certainly non-standard in this market due to adverse selection.  How much are Kiwi women willing to pay to have sex with a man who is paying to have sex with her? It could easily be that we need a price high enough to increase the supply of men who have valuable outside options.  You may just have to live with excess supply.

Whatever-hat-you-wear-to-a-brothel (I wouldn’t know)  insert-your-favorite-gesture: Arthur Robson.

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