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The MPG illusion and the time-saving bias both show that people misjudge the gains from increases in efficiency or speed, because people falsely believe that efficiency and speed are linearly related to consumption (e.g., gallons of fuel or journey time). This efficiency-consumption gap (ECG) has been demonstrated consistently in various situations. In parallel, people have also been found to show a diminished sensitivity to increases in magnitudes when judged under separate vs. joint evaluation modes (SE vs. JE). We show that these “two wrongs can make a right”: when people judge efficiency upgrades under SE mode, their subjective judgments follow a concave curve that closely resembles the curvilinear pattern of efficiency upgrades, making their preferences (artificially) less biased than they are under JE. In two studies we show that when asked for their willingness-to-pay (WTP) for upgrading products or services in two (a smaller vs. a larger) upgrade options, WTPs are less different in SE vs. JE modes. This means that people are exhibiting lower sensitivity to the upgrade size under SE which leads to a de-biasing effect. We show that because JE follow a linear trend, it yields biased preferences for efficiency measures, but not for consumption measures. In contrast, SE yield biased preferences for consumption, but not for efficiency measures.

Svenson (2011) showed that choices of one of two alternative productivity increases to save production resources (e.g., man-months) were biased. Judgments of resource savings following a speed increase from a low production speed line were underestimated and following an increase of a high production speed line overestimated. The objective formula for computing savings includes differences between inverse speeds and this is intuitively very problematic for most people. The purpose of the present studies was to explore ways of ameliorating or eliminating the bias. Study 1 was a control study asking participants to increase the production speed of one production line to save the same amount of production resources (man-months) as was saved by a speed increase in a reference line. The increases judged to match the reference alternatives showed the same bias as in the earlier research on choices. In Study 2 the same task and problems were used as in Study 1, but the participants were asked first to judge the resource saving of the reference alternative in a pair of alternatives before they proceeded to the matching task. This weakened the average bias only slightly. In Study 3, the participants were asked to judge the resources saved from each of two successive increases of the same single production line (other than those of the matching task) before they continued to the matching problems. In this way a participant could realize that a second production speed increase from a higher speed (e.g., from 40 to 60 items /man-month) gives less resource savings than the same speed increase from a first lower speed (e.g., from 20 to 40 items/man-month. Following this, the judgments of the same problems as in the other studies improved and the bias decreased significantly but it did not disappear. To be able to make optimal decisions about productivity increases, people need information about the bias and/or reformulations of the problems.

The time-saving bias describes people's tendency to misestimate the time they can save by increasing the speed in which they perform an activity such as driving or completing a task. People typically underestimate time saved when increasing from a low speed and overestimate time saved when increasing from an already high speed. We suggest that this bias is the result of people's failure to recognize the curvilinear relationship between increasing speed and reducing activity time: As initial speed rises, the same speed increases will yield smaller reductions in time. We explore a new technique to de-bias these faulty estimations: converting measurements of speed to a pace measure (e.g., minutes per fixed distance). Utilizing common driving scenarios, we show that participants who received pace data made more accurate estimations of journey duration at various speeds, time-savings at various speed increases and the required speed to complete a journey.

People make systematic and predictable mistakes regarding estimations of average speed and journey time. In addition, people have been shown to commit a time-saving bias by underestimating the time that can be saved when increasing from a low speed and overestimating the time that can be saved when increasing from a relatively high speed. These misestimations have been shown to relate to biases in judgments of the speed required to arrive at a specific time and to choosing unduly high speed. Professional drivers, such as taxi drivers, might be less susceptible to these biases due to their increased driving experience. In the current study, we interviewed taxi drivers about a journey they were currently making and examined their estimations of journey time, average speed and time savings. Compared to a group of non-professional car drivers, taxi drivers showed the same considerable misestimations of driving speed, journey time and time savings as non-professionals. However, overestimations of time savings among taxi drivers were smaller than those made by car drivers. We discuss the practical significance of these findings.

Biases in people’s judgments of time saved by increasing the speed of an activity have been studied mainly with hypothetical scenarios (Svenson, 2008). The present study asked whether the classic time-saving bias persists as a perceptual bias when we control the speed of an activity and assess the perceived time elapsed at different speeds. Specifically, we investigated the time-saving bias in a driving simulator. Each participant was asked to first drive a distance at a given speed and then drive the same distance again at the speed she or he judged necessary to gain exactly three minutes in travel time compared to the first trip. We found that that the time-saving bias applies to active driving and that it affects the choice of driving speed. The drivers’ time-saving judgements show that the perception of the time elapsed while driving does not eliminate the time-saving bias.

Svenson (2011) showed that choices of one of two alternative productivity increases to save production resources (e.g., man-months) were biased. Judgments of resource savings following a speed increase from a low production speed line were underestimated and following an increase of a high production speed line overestimated. The objective formula for computing savings includes differences between inverse speeds and this is intuitively very problematic for most people. The purpose of the present studies was to explore ways of ameliorating or eliminating the bias. Study 1 was a control study asking participants to increase the production speed of one production line to save the same amount of production resources (man-months) as was saved by a speed increase in a reference line. The increases judged to match the reference alternatives showed the same bias as in the earlier research on choices. In Study 2 the same task and problems were used as in Study 1, but the participants were asked first to judge the resource saving of the reference alternative in a pair of alternatives before they proceeded to the matching task. This weakened the average bias only slightly. In Study 3, the participants were asked to judge the resources saved from each of two successive increases of the same single production line (other than those of the matching task) before they continued to the matching problems. In this way a participant could realize that a second production speed increase from a higher speed (e.g., from 40 to 60 items /man-month) gives less resource savings than the same speed increase from a first lower speed (e.g., from 20 to 40 items/man-month. Following this, the judgments of the same problems as in the other studies improved and the bias decreased significantly but it did not disappear. To be able to make optimal decisions about productivity increases, people need information about the bias and/or reformulations of the problems.

The time-saving bias describes people’s tendency to misestimate the time they can save by increasing the speed in which they perform an activity such as driving or completing a task. People typically underestimate time saved when increasing from a low speed and overestimate time saved when increasing from an already high speed. We suggest that this bias is the result of people’s failure to recognize the curvilinear relationship between increasing speed and reducing activity time: As initial speed rises, the same speed increases will yield smaller reductions in time. We explore a new technique to de-bias these faulty estimations: converting measurements of speed to a pace measure (e.g., minutes per fixed distance). Utilizing common driving scenarios, we show that participants who received pace data made more accurate estimations of journey duration at various speeds, time-savings at various speed increases and the required speed to complete a journey.

According to the time-saving bias, drivers underestimate the time saved when increasing from a low speed and overestimate the time saved when increasing from a relatively high speed. Previous research used a specific type of task — drivers were asked to estimate time saved when increasing speed and to give a numeric response — to show this. The present research conducted two studies with multiple questions to show that the time-saving bias occurs in other tasks. Study 1 found that drivers committed the time-saving bias when asked to estimate (a) the time saved when increasing speed or (b) the distance that can be completed at a given time when increasing speed or (c) the speed required to complete a given distance in decreasing times. Study 2 showed no major differences in estimations of time saved compared to estimations of the remaining journey time and also between responses given on a numeric scale versus a visual analog scale. Study 3 tested two possible explanations for the time-saving bias: a Proportion heuristic and a Differences heuristic. Some evidence was found for use of the latter.

People make systematic and predictable mistakes regarding estimations of average speed and journey time. In addition, people have been shown to commit a time-saving bias by underestimating the time that can be saved when increasing from a low speed and overestimating the time that can be saved when increasing from a relatively high speed. These misestimations have been shown to relate to biases in judgments of the speed required to arrive at a specific time and to choosing unduly high speed. Professional drivers, such as taxi drivers, might be less susceptible to these biases due to their increased driving experience. In the current study, we interviewed taxi drivers about a journey they were currently making and examined their estimations of journey time, average speed and time savings. Compared to a group of non-professional car drivers, taxi drivers showed the same considerable misestimations of driving speed, journey time and time savings as non-professionals. However, overestimations of time savings among taxi drivers were smaller than those made by car drivers. We discuss the practical significance of these findings.

Biases in people’s judgments of time saved by increasing the speed of an activity have been studied mainly with hypothetical scenarios (Svenson, 2008). The present study asked whether the classic time-saving bias persists as a perceptual bias when we control the speed of an activity and assess the perceived time elapsed at different speeds. Specifically, we investigated the time-saving bias in a driving simulator. Each participant was asked to first drive a distance at a given speed and then drive the same distance again at the speed she or he judged necessary to gain exactly three minutes in travel time compared to the first trip. We found that that the time-saving bias applies to active driving and that it affects the choice of driving speed. The drivers’ time-saving judgements show that the perception of the time elapsed while driving does not eliminate the time-saving bias.