The Wrong Way to Pay for a Gym Membership

Are you spending more than you have to for your gym membership? According to research by two economists, Stefano Della Vigna of UC Berkeley and Ulrike Malmendier of Stanford, most people are. As reported in the New York Times magazine’s Freakonomics column, the researchers found that people who buy an annual membership to a health club overestimate by
more than 70 percent how much they’ll actually use it. Many people,
therefore, would be better off buying monthly or daily passes. To read Vigna and Malmendier’s complete report in pdf form, click here.