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Characteristics of the Commercial Sex Market in Thailand: A Microeconomics Investigation

Author

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  • Peera Tangtammaruk

    (Chulalongkorn University, Thailand)

Abstract

The market for commercial sex is in fact just like any other market characterized by demand, supply, and price. The market exists in almost every country, and different types have different market structures. In Thailand, the economic structure of the commercial sex market is rather complicated and there is need for a methodological or scientific approach to help better our understanding. This paper aims to provide a working taxonomy appropriate to the commercial sex market for Thailand. Both primary data (survey and interview) and secondary data based on microeconomic analysis are used to describe the market forces behind Thai’s commercial sex markets. We discuss the demand and supply conditions to see what kind of market structure best suits Thailand’s case. Because the commercial sex market in Thailand is not homogeneous, we categorized the market into sub-markets according to demand and supply characteristics and then justify the kind of market structure and equilibrium for each. For the analytical results, this paper provides many cases and details, for example, the monopoly position and price discrimination practice of brothel, and the oligopoly position in massage parlors, which contrast with the online market that is closer to the perfect competitive model with large number of agents as well as free entry or exit. We hope that an objective take on Thai’s commercial sex market grounded on microeconomics will clear many myths and unfounded issues usually associated with this market.

Suggested Citation

  • Peera Tangtammaruk, 2014. "Characteristics of the Commercial Sex Market in Thailand: A Microeconomics Investigation," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(1), pages 28-46.
    • Handle: RePEc:ejn:ejefjr:v:2:y:2014:i:1:p:28-46
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    References listed on IDEAS

    as
    1. Wawer, Maria J. & Podhisita, Chai & Kanungsukkasem, Uraiwan & Pramualratana, Anthony & McNamara, Regina, 1996. "Origins and working conditions of female sex workers in urban Thailand: Consequences of social context for HIV transmission," Social Science & Medicine, Elsevier, vol. 42(3), pages 453-462, February.
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