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“It is a disturbingly familiar story. A hot new technology produced cheaply in China creates a highly profitable product for its maker. But if problems arise with the goods, the companies selling them can impede understaffed consumer protection regulators who are hamstrung in their efforts to get the products off the shelves.” (New York Times )
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Daily Archives: 15 Jul 07
Neuroeconomics Dept.
The study appears in the journal Neuron and is the most recent from the emerging field of neuroeconomics, which looks at the mental processes that drive economic decision-making. The researchers suspect their study may help to explain why people spend more with credit cards than with cash.
“Credit cards effectively anesthetize the pain of paying,” said George Loewenstein, Carnegie Mellon professor of social and decision sciences (SDS) and co-author of the paper. “You swipe the card and it doesn’t feel like you’re giving anything up to make the purchase, unlike paying cash where you have to hand over bills.””
The researchers had subjects make decisions regarding the expense of making certain purchases while undergoing fMRI scanning of their brains, and discovered that “the insula, a section of the brain associated with pain processing, activated when subjects saw prices that were too high…”, as described by one of the team. An interesting conclusion, but I think it does not prove that paying causes “pain” in a neurologic sense as much as a metaphoric one, which we already knew. In other words, it’s semantics — if you note that the insula lights up both with a physical pain experience and when confronted with a high price, couldn’t you just as readily conclude that the insula is activated with several different types of distress, one of them being pain and the other fiscal distress? [thanks, Joel]
The insula, by the way, is also implicated in another experience we, metaphorically, also call ‘pain’, which is the distress of withdrawal in addiction. I wrote several months ago about a cigarette-smoking patient who suffered an insular stroke and found he no longer craved nicotine.
Great Perseids
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“Got a calendar? Circle this date: Sunday, August 12th. Next to the circle write ‘all night’ and ‘Meteors!’ Attach the above to your refrigerator in plain view so you won’t miss the 2007 Perseid meteor shower.
‘It’s going to be a great show,’ says Bill Cooke of NASA’s Meteoroid Environment Office at the Marshall Space Flight Center. ‘The Moon is new on August 12th–which means no moonlight, dark skies and plenty of meteors.’ How many? Cooke estimates one or two Perseids per minute at the shower’s peak.” (NASA) |
![Magnetic Warning! //graphics8.nytimes.com/images/2007/07/14/business/190-magnet-01.jpg' cannot be displayed]](https://i0.wp.com/graphics8.nytimes.com/images/2007/07/14/business/190-magnet-01.jpg)
![Perseid meteor, August 12, 2006 //science.nasa.gov/headlines/y2007/images/greatperseids/Martin1_strip.jpg' cannot be displayed]](https://i0.wp.com/science.nasa.gov/headlines/y2007/images/greatperseids/Martin1_strip.jpg)