Applying pervasive technologies to create economic incentives that alter consumer behavior

  • Yamabe T
  • Lehdonvirta V
  • Ito H
 et al. 
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Abstract

Economic incentives are a powerful way of shaping con- sumer behavior towards more commercially efficient and en- vironmentally sustainable patterns. In this paper, we explore the idea of combining pervasive computing techniques with electronic payment systems to create activity-based micro- incentives. Users who consume additional resources by e.g., occupying an air-conditioned space instead of a normal space are levied additional micro-payments. In an alternative ap- proach, consumers who choose to save resources are rewarded with micro-rebates off the price of a service. As a result, the cost of using a service corresponds more closely with the resources used, leading market mechanisms to allocate resources efficiently. A key challenge is designing incen- tive mechanisms that alter consumer behavior in the desired fashion. We introduce four incentive models, and present evaluation results suggesting that consumers make different decisions depending on which model is used.

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Authors

  • Tetsuo Yamabe

  • Vili Lehdonvirta

  • Hitoshi Ito

  • Hayuru Soma

  • Hiroaki Kimura

  • Tatsuo Nakajima

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