MARKET MEMO.
You are investigating an emerging new labor market for women. Try to wrap your head around the economics of SugarBabies and SugarDaddies. There are a number of issues you need to try to understand:
economics of SugarBabies and SugarDaddies:
https://www.vice.com/en_us/article/xd5ydz/the-website-that-helps-nerdy-men-buy-girlfriends-1
- Who is supplying the labor in this labor market? Who is supplying the “goods” in the related service market?
- Is this supply rising? What factors are driving demand and supply up? How does it affect rising college debt?
- Who is the employer in this labor market? Who is the consumer in the service market?
- How are services like SeekingArrangment driving up the demand for SugarBaby services (see the video here).
Write a 250-word memo to explain the market for SugarBabies. Identify the information in the questions below and present your research as a 1-page write-up for your advertising firm. The goal is to identify whether this is a growth market and who uses such services.
- Using economic intuition developed in class, describe the labor and goods/services markets for SugarBabies. Who supplies labor; who demands that labor? Who supplies the goods/service; who demands it?
- Economic reasons for increasing labor supply in these markets most likely include one of the following. Which is it and explain.
- Growing college debt.
- Satan.
- Growing employment opportunities for women.
- The economic reasons shifting SugarBaby demand most likely include one of the following. Which is it and explain.
-Satan.
-Computerization like YouPorn.com that replaces the need for SugarBabies, lowering the wages and number of SugarBabies in the market.
Sample Solution
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