Applying pervasive technologies to create economic incentives that alter consumer behavior

Tetsuo Yamabe*, Vili Lehdonvirtat, Hitoshi Ito, Hayuru Soma, Hiroaki Kimura, Tatsuo Nakajima

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

25 Citations (Scopus)


Economie incentives are a powerful way of shaping consumer behavior towards more commercially efficient and environmentally sustainable patterns. In this paper, we explore the idea of combining pervasive computing techniques with electronic payment systems to create activity-based microincentives. 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 approach, 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 incentive 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.

Original languageEnglish
Title of host publicationUbiComp'09 - Proceedings of the 11th ACM International Conference on Ubiquitous Computing
Number of pages10
Publication statusPublished - 2009
Event11th ACM International Conference on Ubiquitous Computing, UbiComp'09 - Orlando, FL, United States
Duration: 2009 Sept 302009 Oct 3

Publication series

NameACM International Conference Proceeding Series


Conference11th ACM International Conference on Ubiquitous Computing, UbiComp'09
Country/TerritoryUnited States
CityOrlando, FL


  • Activity-based micro-pricing
  • Economic incentives
  • Micropayments
  • Mobile payment
  • Persuasive technology
  • Virtual currency

ASJC Scopus subject areas

  • Software
  • Human-Computer Interaction
  • Computer Vision and Pattern Recognition
  • Computer Networks and Communications


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