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Originally Posted by http://en.wikipedia.org/wiki/Thermostat#Mechanical
A thermostat is used in automobiles using an internal combustion engine to regulate the flow of coolant.
This type of thermostat operates mechanically. It makes use of a wax pellet inside a sealed chamber. The wax is solid at low temperatures but as the engine heats up the wax melts and expands. The sealed chamber has an expansion provision that operates a rod which opens a valve when the operating temperature is exceeded. The operating temperature is fixed, but is determined by the specific composition of the wax, so thermostats of this type are available to maintain different temperatures, typically in the range of 70 to 90 ° C (160 to 200 ° F). Modern engines are run hot, that is, over 80 °C (180 °F), in order to run more efficiently and to reduce the emission of pollutants. Most thermostats have a small bypass hole to vent any gas that might get into the system (e.g., air introduced during coolant replacement). Modern cooling systems contain a relief valve in the form of a spring-loaded radiator pressure cap, with a tube leading to a partially filled expansion reservoir. Owing to the high temperature, the cooling system will become pressurized to a maximum set by the relief valve. The additional pressure increases the boiling point of the coolant above that which it would be at atmospheric pressure.
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I think basically the benefit of a different temperature thermostat over stock would be that it would allow the engine to get coolant at a different temperature which could help in preventing overheating in I guess higher performance engines which may get to higher temperatures more rapidly?
EDIT: Beaten.. good call hak