Price Discrimination

Analyse the pricing policy employed by University of Exeter sports centre: (https://sport.exeter.ac.uk/join/)

Using rational theory, what kind of consumers choose the different memberships? Discuss who you think would use them in the light of the behavioural findings by Malmendier and Della Vigna “Paying Not to go to the Gym." (American Economic Review, June 2006, vol. 96 (3), pp. 694-719.

You may access the paper at https://emlab.berkeley.edu/_ulrike/Papers/gym.pdf.

1. Main featurs of the gym
2. Predictions of Contractual Choice
3. Contractual Choice and consumption overtime

>price discrimination with regard to user categories
>the reasons behind price segmentation, welfare implications
>two-part tariff?
>flat subscription rate

behaviour findings of consumers: overestimates/irrational and rational
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