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Oct. 21 2009 - 8:13 pm | 40 views | 0 recommendations | 0 comments

Hookers can’t be green? Such cynicism!

A sex worker poses on marble tiling, the same ...

Image by AFP/Getty Images via Daylife

I don’t know what’s more hilarious — Steven Levitt’s posting on the Freakonomics blog telling of a German brothel that is giving a discount to folks who arrived by bike or public transportation — or the analysis of it, and the comments on it. (Remember, prostitution is legal in Germany, so they actually can advertise or otherwise promote this.)

The AP, apparently, reported the story straight. Because of the economy, the business of boffing has been hit hard. So the brothel is giving a 5 euro discount to anyone who shows a bicycle padlock key or shows proof they took public transportation. And since they made this offer, business has been brisk. (Of course, why someone who drove couldn’t possibly have carried a padlock key in his pocket is another question…)

Levitt’s take on this?

Although the brothel says the reason for the price discount is that it wants to be environmentally conscious, it sure looks to me like the brothel is dressing up some good old-fashioned price discrimination arguments in a green disguise.

Customers who come by bus or bicycle are likely to have lower incomes and be more price sensitive than those who arrive by car. If that is the case, the brothel would like to charge such customers lower prices than the richer ones. The difficulty is that, without a justifiable rationale, the rich customers would be angry if the brothel tried to charge them more (and indeed, how in general, would the brothel know who is rich?). The environmental argument gives the brothel cover for doing what it always wanted to do anyway.

Isn’t it just a teensy bit possible that they want to do well by doing good? They could just as easily have offered a discount for people who show up in off hours — on the idea that this would attract unemployed guys, who have more time than money. Or how about quantity discount — book two sessions in a week, get the third free.

And then I come to the first comment — a fellow called Eric questions whether in fact customers who come by bike or public transportation are likely to have lower incomes. And he adds: “I would say for sure in the United States, but would that fact hold true in Europe?”

Good grief — so not only are the German hookers faking environmental sensitivity, but all of us middle class folk who felt good about biking or walking whenever we could, that was because we were trying to save money? Who knew?

I gotta say, I’ve always thought I’m up there when it comes to cynicism, but boy, I have been royally trumped!


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About Me

I graduated from Cornell with a degree in child psychology, enough years ago so that all you needed to break into journalism was willingness to starve. I went into business journalism because, in the 60s, the business press was the crusading press, the ones that wrote about environment, race relations, etc. Since then I have worked for Business Week, Chemical Week and, from 1984 through May 2008, BizDay at the New York Times. I remain bored by and ignorant of esoteric financial instruments; I remain fascinated and pretty knowledgeable about management, marketing, environment, all the non-financial aspects of business. But my true passions? Tennis, both playing and watching, and food, both cooking and eating.

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