New Gym Plan Requires Members To Pay More If They Don’t Work Out
A new concept gym uses behavioral economics to change how and when members pay to workout.
A new fitness concept developed by two Harvard economics students, Yifan Zhang and Geoff Oberhofer, leans heavily on behavioral economics to motivate its members to workout. The concept, Gym-Pact, employs what Zhang calls “motivational fees” — members pay more money when they do not exercise.
The students are trying to tackle a particular economic challenge: because gym fees are paid upfront, there is little future economic penalty for not working out. In effect, you’ve already paid the maximum economic penalty.