Vision IQ

Placebo Effect Definition The placebo effect materialises when a person's conviction in the effectiveness of a treatment or intervention generates perceived improvements, even if the treatment itself lacks any active substance or utility. This phenomenon underlines the profound influence of the mind over bodily or operational outcomes. Discovery and Origins The concept of the placebo effect was discovered in the mid-20th century, although its roots can be traced back to ancient medical practices. The term "placebo," derived from the Latin phrase "I shall please," was initially used in the 18th century to describe treatments given more to please the patient than to have any therapeutic effect. One of the earliest documented cases highlighting the placebo effect occurred during World War II. American anaesthesiologist Dr. Henry K. Beecher observed that when he ran out of morphine, he could inject soldiers with saline solution and tell them it was a powerful painki

Reactance Definition of Reactance Reactance is a psychological phenomenon where individuals react against attempts to restrict their freedom or choices, even when those restrictions are intended for their benefit. This reaction is often emotional and can lead to behaviours that are contrary to what is expected or desired by those imposing the restrictions. Discovery and Origin of Reactance Jack Brehm, an American psychologist, introduced the concept of psychological reactance in 1966. Brehm proposed that when people perceive their freedom to choose or act as being restricted, they experience an uncomfortable motivational state. This state drives them to regain that freedom, often by doing the opposite of what is being imposed on them. Critical Characteristics of Reactance Perceived Threat to Freedom: The primary trigger for reactance is the perception that one's freedom to choose or act is being threatened. Motivational State: Reactance is not just a passive feeling but an active

Discovery of the Endowment Effect The concept of the Endowment Effect was first identified and described by psychologist Richard Thaler in 1980. Thaler observed that people would demand much more to give up an object they owned than they would be willing to pay to acquire the same object if they did not already own it. This insight was pivotal in the development of behavioural economics, challenging the traditional economic theory that assumes people always act rationally to maximise their utility. Definition of the Endowment Effect The Endowment Effect is a cognitive bias where individuals ascribe more value to objects, goods, or items simply because they own them. This phenomenon leads people to overvalue their possessions compared to their objective market value or how they might value the same items if they did not own them. Critical Characteristics and Contributing Factors Following are some critical characteristics of the Endowment Effect and contributing factors:   Ownership : T

Discovery of Ambiguity Aversion The concept of ambiguity aversion was first formally identified by economist Daniel Ellsberg in his seminal 1961 paper, famously known as the "Ellsberg Paradox." Through a series of thought experiments, Ellsberg demonstrated that people prefer to bet on outcomes with known probabilities rather than on outcomes where the probabilities are unknown, even when the expected returns are identical. His experiments involved scenarios where participants had to choose between betting on the outcome of draws from urns with known and unknown distributions of coloured balls, revealing a systematic preference for quantifiable risks over ambiguous ones. Definition of Ambiguity Aversion Ambiguity aversion refers to our inclination to shy away from choices with unclear or uncertain outcomes. We tend to favour options where the potential consequences are well-defined and understood. Ambiguity aversion, a concept primarily rooted in behavioural economics and deci