Last week I re-joined gym with Les Mills, as my previous fitness club (Revive) got shut down. The amenities provided and the corresponding higher price charged by Les Mills made two things come to mind:
- Why are the prices different between these gyms?
- Are they “extracting surplus” from me – in other words overcharging me?
To think about this, I want to talk about competition – specifically an idea called monopolistic competition.Read more