Keyword: health club
Flat-rate Pricing (6/22/2006)
Flat-rate pricing may increase the bottom line of businesses when consumers over-estimate the amount they might consume and under-estimate the cost of un-restrained use.
Keywords: all-you-can-eat, Boston, flat-rate pricing, Greyhound Bus, gym membership, health club, procrastination, Red Lobster, variety
Unsinkable Sunk Cost (6/17/2004)
Health club usage patterns clearly show that members are emotionally attached to sunk cost even though most economists think that rational incremental decisions should only compare marginal benefit with marginal cost.
Keywords: health club, irrational choice, rational choice, sunk cost