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The brothel owners and potential prostitutes faced a problem: the brothel needed credibly to commit to a contractual structure i generous enough to offset the dangers and reputational damage to the prostitute that the job entailed, while ii giving the prostitute an incentive to exert effort while working at a harsh job in an unobservable environment.

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To learn more, order your copy of Renting Lacy today. Victims are expected to comply with the rules and often do so out of fear of punishment or because they have been psychologically manipulated into a sense of loyalty or love. It could be in a rural area or nice neighborhood. Most brothels have security measures to prevent attacks by other criminals or provide a warning if law enforcement are nearby. The security is two sided—to keep the brothel game and children in, as well as robbers out. The places often are guarded and open 24 hours a day, but some have closing times in which the victims are locked in from the outside.

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The brothel owners and potential prostitutes faced a problem: the brothel needed credibly to commit to a contractual structure i generous enough to offset the dangers and reputational damage to the prostitute that the job entailed, while ii giving the prostitute an incentive to exert effort while working at a harsh job in an unobservable environment.

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Realizing that the brothel owners had an incentive to exaggerate their future earnings, the women demanded a large portion of their pay upfront. Realizing that they were headed to the war zone, they demanded a relatively short maximum term.

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And realizing that the women had an incentive to shirk, the brothel owners demanded a contractual structure that gave women incentives to work hard. To satisfy these superficially contradictory demands, the women and brothels concluded indenture contracts that coupled i a large advance with one- or two-year maximum terms, with ii an ability for the women to leave early if they generated sufficient revenue.

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