Saturday, September 29, 2007
Disequilibrium in the striptease market
Here is an interesting, albeit predictable, vice-related consequence of a decline of the US dollar relative to its Canadian counterpart. The Wall Street Journal cites a report by an owner of a chain of strip clubs in Detroit and Windsor, Ontario, that American dancers go to Canada to get higher earnings while Canadian customers are heading to Detroit where they can pay less for the pleasure of watching. My guess is that sooner or later the market has to take care of these disparities, but for the time being a measure of disequilibrium seems to prevail.
Thanks to Tyler Cowen at MarginalRevolution for the pointer (via Daniel Hamermesh's blog).