Consumers Exhibit the Planning Fallacy For Time But Not Money

Stephen Spiller, Duke University, USA
John G. Lynch jr., Leeds School of Business, University of Colorado at Boulder, USA
Research on the planning fallacy indicates that people systematically underestimate how long projects will take. Although the fallacy conceptually extends to money expenditures, there has been little empirical work on the planning fallacy for money. In three studies, we find that consumers exhibit the planning fallacy for time but not for money. This cross-resource difference in the planning fallacy is mediated by propensity to plan: individuals who plan more exhibit a greater planning fallacy and individuals tend to plan more for their use of time than their use of money.
[ to cite ]:
Stephen Spiller and John G. Lynch jr. (2010) ,"Consumers Exhibit the Planning Fallacy For Time But Not Money", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 134-137 .