The author of the MPG illusion on why we misunderstand the meaning of miles per gallon (and why we shouldn't hate the hybrid Cadillac Escalade)

Understanding miles per gallon seems so easy. Richard Larrick and Jack Soll of Duke University’s Fuqua School of Business explain why the concept trips up most of us. The duo recently published a paper in Science titled “The MPG Illusion” that has received a national media attention (listen to the Science podcast here.). For a taste of the research and a test of your fuel efficiency expertise, take this quiz.

The Nudge blog invited Larrick to write a post summarizing his findings (with a more in-depth description of the three studies he and Soll conducted), and clearing up major misconceptions about his research that have been reported in the press. We are delighted to have him share his thoughts.

Read Larrick’s post here.

(Hat tip to three Nudge readers – Bob Bateman, David Hagmann, and Mostly Economics – for noticing the MPG Illusion.)

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