How Yale Professors Lose Weight

A Yale economics professor and a Yale law school professor are hoping that the next diet trend to take off is their own, which involves getting dieters to sign binding contracts committing to pay significant sums of money if they fail to meet their weight-loss goals.

The economist, Dean Karlan, tested the method himself, promising to hand over $1,000 to a friend every week that he didn't drop one pound. Soon enough, he lost 10 pounds, getting down to 170 pounds without paying a cent.

Now, Mr. Karlan and Ian Ayres, the law professor who also teaches at Yale's school of management, are launching a company based on this strategy.
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Mr. Ayres said he first used the system to lose some pounds, and he now has $500 a week at stake to maintain his weight. He calculates that he has put over $21,000 — or $500 a week for almost a year — at risk through this system. But it makes more sense than traditional weight loss systems, he said. "What's interesting is that Weight Watchers costs you $500 a year and gives modest results. I put $500 at risk every week, but it's cost me nothing because I've met my goals so far."

Weight Watchers declined to comment.