She rents the most dilapidated unit, and is a sex worker. He reasons that she can also be bought cheaply for local landlord jobs. His reasoning is that he know the cost benefits of sex work better than she.
She takes the deal often, but there is not enough landlord work and continues sex work part time. She reasons that the landlord has sex needs and should solve those a lower market rates, since she i otherwise on the street.
He reasons that paying for sex and labor from a local tenant creates a marriage and avoids mixing the two. She reasons that their is one exception, try everything once. He has tried that once, it just causes turbulence.
She becomes a bit schizoid, increasingly discovering the disutility of sex work, her regular labor flounders.
So, the landlord, like any Coasian, this means a higher price for her labor, so he plays this trick constantly, paying for future sex work, then dismissing the debt. She is still off equibrium, and interprets this still as a missed sale. If I am willing to negotiate her 'sex work', indirectly, then transaction costs are reduced if I just buy some of her product.
The landlord has one reserve, he can still try it once, but there in lies a problem. After trying it once it is a long time before the 'try it onc' can be renewed. He no longer has that bonus to put on her. Then the landlord is stuck with a pure labor contract over time from a tenant. Or he has to be the occasional customer.
But have a 'try it once' the reserve begins increasing. If he plays hard to get, his equivalent labor costs go down, an exploitative relationship. That his, he can squeeze her on the black market easier than on the white market. He is essentially buying more work for cheaper the longer he holds out. And, once he again does a 'try it once'. He has to dip a toe, he has to measure the scofflaw queue to get relative pricing. It is like, 'Ok,Ok, lets date,' I pay and we get a price on that.
The slumlord has thrown his lot in with the tenants, they become neighbors and he lives in their culture. In those circumstance dating the local, tenant hooker on a dinner date is normal. For the reasons above, it sets relative pricing, holds the community to the right edge bound on labor pricing. People learn how often the slumlord dates the tenant and how often the slumlord enslaves the tenant in labor. A young girl growing up, seeing this, will observe a sustainable, but miserable life of the middle aged tenant hooker. That young girl gets a measure of the scofflaw queue, it helps her price labor up the ladder.
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