Whenever the monthly "High Rates" thread rolls around, there is usually some banter back and forth about whore rates and economic theory. Always in these discussion, someone will throw out that economic theory doesn't apply to the hobby.
The reason this gets said is that of the 99% of the population never studied economics. The only economic thing they can remember is a simple supply and demand graph. Saying you know economics based off a single graph is like saying you know everything about football when all you know is that if the ball crosses the goal line it's a touch down.
In actual truth, the hobby conforms to economic theory to a T. The problem is the truth is buried behind a bunch of micro economic theory of shit like Rational Consumers, Utility Function Maximization, Preferences, Consumption Bundles, blah blah blah.
No one wants to read all that shit, so I thought I'd lay it out for you all in layman's terms that crayon eaters can understand.
At the heart are some key truths:
1) The majority of women on this planet are outright lazy. They want guys to do the work for them or just give them what they want instead of working for it themselves. This is why "Generous men" is the single most common term under a providers showcase "Likes" entry.
While seemingly a misogynistic statement, this laziness is fully described by looking at the graph of a woman's diminishing marginal utility curve for an extra hour of Jerry Springer re-runs. It doesn't start to level out until it's beyond the visual horizon. To be honest, you need more than a marginal utility curve, but it's all boring stuff about Preferences and Consumption Bundles and other shit.
2) Guys mistakenly believe a hookers utility function operates like theirs. To guys, it's all about increasing their income to constantly push the Budget Constraint line up, thereby increasing utility and offering more consumption options.
To understand why a hookers is different gets into more boring stuff about Rational Choice Theory, Satisficing, and Aspiration Levels. At the heart of it, you have to understand that whores don't want to be whores. For most of them, being a whore is only a short term gig to get past a budgetary black hole and then into a non sucking dick career (or to finding a new sucker to buy everything for them).
So then, while being a whore, they are not trying to maximize their utility function, but only aspiring to maintain a minimum level of lifestyle.
So how does all this tie in? If guys were whores, they would be lowering rates and seeing 10 customers a day to try and make $250,000/yr. Whores on the other hand don't want to make a lot of money. They want to raise rates to the point that Jerry Springer re-runs are maximized, sucking dick is minimized, and the rent still gets paid.
There you have it, the reason for ever increasing rates.
To be honest, I slept through economics, but I stayed at a Holiday Inn Express last night