Search

16 May 2009 • 11:21 am

Numbers, Perception, and Motivation

Reading a post on the excellent political blog fivethirtyeight.com, I was reminded that how we look at numbers really affects how we consider the rationale for a proposed change. Congress is currently considering legislation to provide consumers with vouchers of up to $4,500 to scrap their gas-guzzlers and replace them with more fuel-efficient cars.

Here was an excerpt of the proposal:

Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Wow. It sounds like a windfall for a very slight improvement in gas mileage. But it may be because we are looking at fuel efficiency backwards. Americans evaluate fuel efficiency different than how those do in most other parts of the world.

more