Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 743: Experimental and non-experimental evidence on limited attention and present bias at the gym

Paul Muller () and Wolfgang Habla ()
Additional contact information
Paul Muller: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Wolfgang Habla: Centre for European Economic Research(ZEW) and University of Mannheim., Postal: L71,68161 Mannheim.

Abstract: We show that limited attention and present bias contribute to low levels of exercise. First, in a large randomized experiment, we find that email reminders increase gym visits by 13 % and that they benefit nearly all types of individuals. Limited attention can explain these effects. Second, using a novel dataset, we find that many bookings for gym classes are canceled, and that bookings are made even for classes that never have a waiting list. Comparing these findings to the predictions of a dynamic discrete choice model, we conclude that many gym members use bookings to commit themselves to future attendance.

Keywords: health behaviour; randomized experiment; reminders; nudging; habit formation; limited attention; time inconsistency

JEL-codes: C93; D91; I12

57 pages, October 2018

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