June 6, 2013
In economics and decision theory, loss aversion refers to people’s tendency to strongly prefer avoiding losses to acquiring gains. Most studies suggest that losses are twice as powerful, psychologically, as gains. The concept was first demonstrated by psychologists Amos Tversky and Daniel Kahneman. John List, Chairman of the University of Chicagos’ department of economics has said: ‘It’s a deeply ingrained behavioral trait. .. that all human beings have — this underlying phenomenon that ‘I really, really dislike losses, and I will do all I can to avoid losing something.’
Loss aversion leads to risk aversion when people evaluate an outcome comprising similar gains and losses; since people prefer avoiding losses to making gains. Loss aversion may also explain sunk cost effects, where people justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting that the cost, starting today, of continuing the decision outweighs the expected benefit.
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June 6, 2013
In behavioral economics, the endowment effect (also known as divestiture aversion) is the hypothesis that a person’s willingness to accept (WTA) compensation for a good is greater than their willingness to pay (WTP) for it once their property right to it has been established. People will pay more to retain something they own than to obtain something owned by someone else—even when there is no cause for attachment, or even if the item was only obtained minutes ago. This is due to the fact that once you own the item, foregoing it feels like a loss, and humans are loss-averse.
The endowment effect contradicts the Coase theorem (a theory of economic efficiency), and was described as inconsistent with standard economic theory which asserts that a person’s willingness to pay (WTP) for a good should be equal to their willingness to accept (WTA) compensation to be deprived of the good, a hypothesis which underlies consumer theory and indifference curves.
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June 6, 2013
Inscape, in visual art, is a term especially associated with certain works of Chilean artist Roberto Matta, but it is also used in other senses within the visual arts. Though the term has been applied to stylistically diverse artworks, it usually conveys some notion of representing the artist’s psyche as a kind of interior landscape. The word inscape can therefore be read as a kind of portmanteau, combining interior (or inward) with landscape.
According to Professor Claude Cernuschi, Matta’s use of the term inscape for a series of landscape-like abstract or surrealist paintings reflects ‘the psychoanalytic view of the mind as a three-dimensional space: the ‘inscape.” The ‘inscape’ concept is particularly apt for Matta’s works of the late 1930s. As art historian Dawn Ades writes, ‘A series of brilliant oil paintings done during the years of his [Matta’s] first association with the Surrealists explore visual metaphors for the mental landscape.’
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June 6, 2013
Roberto Matta (1911 – 2002) was one of Chile’s best-known painters and a seminal figure in 20th century abstract expressionist and surrealist art. Born in Santiago, he initially studied architecture at the Pontificia Universidad Católica de Chile in Santiago, but became disillusioned with this occupation and left for Paris in 1933. His travels in Europe and the USA led him to meet artists such as Arshile Gorky, René Magritte, Salvador Dalí, André Breton, and Le Corbusier. Matta was of Spanish, Basque, and French descent.
It was Breton who provided the major spur to the Chilean’s direction in art, encouraging his work and introducing him to the leading members of the Paris Surrealist movement. Matta produced illustrations and articles for Surrealist journals such as ‘Minotaure.’ During this period he was introduced to the work of many prominent contemporary European artists, such as Pablo Picasso and Marcel Duchamp.
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June 6, 2013
Biomorphism is an art movement that began in the 20th century. It models artistic design elements on naturally occurring patterns or shapes reminiscent of nature.
Taken to its extreme it attempts to force naturally occurring shapes onto functional devices, often with mixed results.
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June 6, 2013
HeadOn is the brand name of a homeopathic product claimed to relieve headaches. It achieved widespread notoriety in 2006 as a result of a repetitive commercial, consisting only of the tagline ‘HeadOn. Apply directly to the forehead,’ stated three times in succession, accompanied by a video of a model using the product without ever directly stating the product’s purpose.
Focus groups recalled the ads much more than with any other method, although many people considered the ads annoying. Manufacturer Miralus Healthcare decided not to include any factual claims about the product in the spots after the National Advertising Division of the Better Business Bureau objected to the claim that HeadOn provided ‘fast, safe, effective’ headache relief made in an earlier spot.
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