Yes...It controls the heat. If it remains "OPEN", the coolant never has a chance to warm up. So, your engine is always "Cold"..This will make it run "RICH", more gas..poor fuel milage.
By changing from a 198 to a 180, it opens quicker and closes quicker..Meaning, the engine warms up, but does not run as hot...This "TRICKS" the computer into thinking the engine is warming up, but not at operating temperature. So it will still run "RICH", but not as "RICH" as it would cold.
Most of the aftermarket chips are set-up to correct this problem.
What it all boils down too...
180...motor runs cooler, MPG suffers alittle...
198...motor runs at temperature it was designed to run at....
Alittle side note...I am running the JET chip and Jet T-stat..Also have a couple of other engine mods. With the set-up I have, when I was at stock hieght and running stock tires, I was getting 20-22 MPG. I am also running 87 grade fuel, always, with no "PING". Many people say, with the chip you must run 92 grade fuel...I have never had too.