Thursday, June 19, 2008

Gallons Per Mile makes more sense

Now that gas is over $4 and people with one-hour commutes are pouring more into their tanks than they are into their mortgages, a lot of Americans are looking again at the cars out in the garage and wondering if there's a better way...

Should we trade mom's Corolla for a Smart Car, or reluctantly pry our hands off the helm of the mighty 10 mpg Excursion and get a dumpy old station wagon?

If you're only looking at the federally mandated Miles per Gallon sticker, it's going to be hard to make the right choice, argue Fuqua School of Business management professors Richard Larrick and Jack Soll. In a series of simple experiments, they showed that people made much more accurate choices about cars if the efficiency was expressed as gallons per 100 miles, rather than mpg.

But don't just take their word for it -- try the interactive quiz!

These guys are on to something. Watch for them all over the airwaves in the coming week.

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