The Economics of Sex

1. The Economics of Sex Sex, Sexual Health, and STDs

2. Caveat Emptor • Not a traditional Economics topic. • Ground rules.

3. “Protection” • Protection from What? • Pregnancy • STI

5. STDsSTIs • BV - Bacterial Vaginosis • Chlamydia and LGV (Lymphogranuloma Venereum ) • Gonorrhea • Herpes, Genital • HPV - Human Papillomavirus Infection • PID - Pelvic Inflammatory Disease • Syphilis • Trichomoniasis • HIV/AIDS

6. BV • Bacterial Vaginosis (BV) is the name of a condition in women where the normal balance of bacteria in the vagina is disrupted and replaced by an overgrowth of certain bacteria. It is sometimes accompanied by discharge, odor, pain, itching, or burning.

7. Chlamydia and LGV • Chlamydia is a common sexually transmitted disease (STD) caused by the bacterium, Chlamydia trachomatis, which can damage a woman's reproductive organs. Even though symptoms of chlamydia are usually mild or absent, serious complications that cause irreversible damage, including infertility, can occur "silently" before a woman ever recognizes a problem. Chlamydia also can cause discharge from the penis of an infected man.

8. Gonorrhea • Gonorrhea is a sexually transmitted disease (STD). Gonorrhea is caused by Neisseria gonorrhoeae, a bacterium that can grow and multiply easily in the warm, moist areas of the reproductive tract, including the cervix (opening to the womb), uterus (womb), and fallopian tubes (egg canals) in women, and in the urethra (urine canal) in women and men. The bacterium can also grow in the mouth, throat, eyes, and anus.

9. Syphilis • Syphilis is a sexually transmitted disease (STD) caused by the bacterium Treponema pallidum. It has often been called “the great imitator” because so many of the signs and symptoms are indistinguishable from those of other diseases.

10. HPV • Genital human papillomavirus (also called HPV) is the most common sexually transmitted infection (STI). There are more than 40 HPV types that can infect the genital areas of males and females. These HPV types can also infect the mouth and throat. Most people who become infected with HPV do not even know they have it.

11. Herpes • Genital herpes is a sexually transmitted disease (STD) caused by the herpes simplex viruses type 1 (HSV-1) and type 2 (HSV-2). Most genital herpes is caused by HSV-2. Most individuals have no or only minimal signs or symptoms from HSV-1 or HSV-2 infection. When signs do occur, they typically appear as one or more blisters on or around the genitals or rectum. The blisters break, leaving tender ulcers (sores) that may take two to four weeks to heal the first time they occur.

12. HIV/AIDS • HIV is the human immunodeficiency virus. It is the virus that can lead to acquired immune deficiency syndrome, or AIDS. CDC estimates that about 56,000 people in the United States contracted HIV in 2006. • HIV damages a person’s body by destroying specific blood cells, called CD4+ T cells, which are crucial to helping the body fight diseases.

23. AIDS/HIV Quiz • Next, I am going to read you some methods that people use to prevent getting the AIDS virus through sexual activity. For each one, please tell me whether you think it is very effective, somewhat effective, or not at all effective in preventing someone from getting the AIDS virus through sexual activity. • Very Effective, Somewhat Effective, Not at all Effective

24. Using a diaphragm? • Using a condom? • Using a spermicidal jelly, foam, or cream? • Using a condom w/a spermicide jelly, form or cream? • Having a vasectomy? • Two people who do not have the AIDS virus having sex only with each other?

25. 1. Using a diaphragm?

26. 2. Using a condom

27. 3. Using a spermicide

28. 4. Condom with spermicide

29. 5. Have a vasectomy

30. 6. Monogamy

31. Score Females average=3.60 Males average=3.54

32. Economic Costs • The total estimated burden of the nine million new cases of these STDs that occurred among 15-24-year-olds in 2000 was $6.5 billion (in year 2000 dollars). Viral STDs accounted for 94% of the total burden ($6.2 billion), and nonviral STDs accounted for 6% of the total burden ($0.4 billion). HIV and HPV were by far the most costly STDs in terms of total estimated direct medical costs, accounting for 90% of the total burden ($5.9 billion). • Chesson et al. 2004

33. Model • Supply and Demand

34. Matching Model • Matching • on what factor/domain/characteristic • Search/transaction costs • Gathering information • Informational asymmetries • Social institutions/norms

35. Sex and Happiness • Kahneman et al. 2004 • Blanchflower and Oswald 2004

36. Kahneman et al. 2004

37. Blanchflower and Oswald 2004

38. NHSLS 1992

39. NHSLS 1992

40. Blanchflower and Oswald 2004

41. Male Sex Behavior and Identification Col1 exclusively male Col 2 both Col 3 exclusively female

42. Male Sexual Attraction and Identification

43. Evolution, Biology and Sex • Bateman Principle • Eggs scarce, sperm not. The costs (time) of having children are born predominantly by females, not males. • This results in male demand for variety, and females increasing search and limiting partners.

44. Evolution, Biology and Sex • Coolidge Effect • The President and Mrs. Coolidge were being shown [separately] around an experimental government farm. When [Mrs. Coolidge] came to the chicken yard she noticed that a rooster was mating very frequently. She asked the attendant how often that happened and was told, "Dozens of times each day." Mrs. Coolidge said, "Tell that to the President when he comes by." Upon being told, President asked, "Same hen every time?" The reply was, "Oh, no, Mr. President, a different hen every time." President: "Tell that to Mrs. Coolidge."

45. A Note on Hormones • Testosterone • Associated with aggression, higher rates if discount, more susceptible to visual cues • Estrogen • Affects bargaining, performance in bidding in auctions • Oxytocin (love hormone)

46. Chen et al (2005)

47. Mialon 2007

48. http://blog.okcupid.com/index.php/10-charts-about-sex/

50. Supply and Demand • Model the matching as Supply and Demand