1. Economics of Sex Reviewed by Robert Noetzel

2. Reviewing the Book: Sex, Drugs and Economics This is a review of the first chapter entitled, Sex: Can You Have Too Much of a Good Thing? This is a review of the first chapter entitled, Sex: Can You Have Too Much of a Good Thing? Written by Diane Coyle Written by Diane Coyle This look is and unconventional way of looking at certain industries in the world This look is and unconventional way of looking at certain industries in the world

3. What Diane Coyle says about the Sex Industry Pornography is the biggest success story on the Internet Pornography is the biggest success story on the Internet The Internet has made it cheaper, easier and less frightening to become a sex industry entrepreneur The Internet has made it cheaper, easier and less frightening to become a sex industry entrepreneur It has also made it easier, cheaper, and less embarrassing to buy pornography. It has also made it easier, cheaper, and less embarrassing to buy pornography. But why are the profits so large? But why are the profits so large?

4. Economics of the Sex Industry: Supply Side In cases where certain things are illegal In cases where certain things are illegal This restricts supply This restricts supply Boosts criminal activity Boosts criminal activity Leading to huge profits Leading to huge profits In cases where pornography is illegal In cases where pornography is illegal The sex market is not like markets for other goods There is not a shortage of skilled workers, unlikely leading to higher wages But how do women make a larger income?

5. Deeper Look into the Supply Side of Legal Pornography There is inelastic supply of labor because of social inhibitions attached to the field There is inelastic supply of labor because of social inhibitions attached to the field The labor supply is not responsive to pay The labor supply is not responsive to pay A career does not last long A career does not last long High earnings for a relatively short period High earnings for a relatively short period

6. The Demand Side of Legal Pornography: Why People Pay as Much as They Do Product Differentiation Product Differentiation Consumers’ desire for privacy, prevents price comparison, unlike normal competitive markets Consumers’ desire for privacy, prevents price comparison, unlike normal competitive markets Individuals’ differing tastes Individuals’ differing tastes This all leads to monopolistically competitive markets.

7. My Reflection There are only a certain number of women that are willing to be in the sex industry There are only a certain number of women that are willing to be in the sex industry Out of this number, there are only a certain of women that are accepted in be in the sex industry Out of this number, there are only a certain of women that are accepted in be in the sex industry While there isn’t a shortage of skilled workers, there are certain women that are more highly demanded then others, raise their wages While there isn’t a shortage of skilled workers, there are certain women that are more highly demanded then others, raise their wages High cost to the consumer is incurred by the high cost of the wages and the fact that it is a monopolistically competitive market, different tastes for different people. High cost to the consumer is incurred by the high cost of the wages and the fact that it is a monopolistically competitive market, different tastes for different people.