Paying Not to Go to the Gym

@article{DellaVigna2006PayingNT,
  title={Paying Not to Go to the Gym},
  author={Stefano DellaVigna and Ulrike Malmendier},
  journal={The American Economic Review},
  year={2006},
  volume={96},
  pages={694-719}
}
How do consumers choose from a menu of contracts? We analyze a novel dataset from three U.S. health clubs with information on both the contractual choice and the day-to-day attendance decisions of 7,752 members over three years. The observed consumer behavior is difficult to reconcile with standard preferences and beliefs. First, members who choose a contract with a flat monthly fee of over $70 attend on average 4.3 times per month. They pay a price per expected visit of more than $17, even… 

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