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basically, the longer the distance electricity has to travel, the lower the voltage will be in the end (increased resistance = decreased voltage).
to complicate things, the smaller the wire the voltage is traveling on over this long distance, the harder the alternator has to work to make the electricity move down the wire, this causes burnt up plugs, alternators, rectifiers etc...(same thing, increased resistance = decreased voltage)
Small wire can be used effectively IF the distance traveled is very short AND long distances are no problem if the wire used is a large gauge..
BUT - in motorcycles, space is at a premium and harness manufaturing and assembly have to be taken into consideration. Unfortunately, I don't think the bike engineers (any of them) take real world use into account...so on paper, the gauge and length of wire used is fine but, in the real world, it's not.
SO - the MOD I do - take a large wire, run over a short distance and all is better and working how it was intended...no bottle neck in the wiring
The only performance increase would be the bike now working as it was designed with proper voltage...It will REALLY effect ignition coils since they are a linear device (a coil multiplies its input voltage, so - lets say the voltage input is 12 volts and it increases the voltage 1000 fold, that would equal a spark voltage of 12000 volts, now lets get the input voltage up to 14.4 and now our spark voltage is 14400)
this is simplified but, I hope it helps explain things.
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