• Corpus ID: 33162828

Can hyperbolic discounting explain the gym-pass puzzle?

  title={Can hyperbolic discounting explain the gym-pass puzzle?},
  author={Rui Zhang},
Malmendier and Vigna (2006) in the journal article ”Paying not to go to the Gym” found that empirical studies about consumers’ behaviour are difficult to reconcile with standard preferences theory. For example, standard preferences are unable to explain why people who buy a gym pass will not go to the gym very often later on. This study aims to explore whether hyperbolic discounting can explain this kind of behaviour. In this paper, I propose a simple behavioural model of intertemporal choices… 

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