Activity-Based Micro-pricing: Realizing Sustainable Behavior Changes through Economic Incentives

Abstract

Abstract. In this paper, we further develop the idea of combining per-vasive computing techniques with electronic payment systems to create activity-based micro-incentives. Economic incentives are an effective way to influence consumer behavior, and are used in e.g. marketing and re-source coordination. Our approach allows marketers and regulators to induce consumers to perform particular actions in new application do-mains by attaching micro-prices to a wider range of behaviors. A key challenge is designing incentive mechanisms that result in desired be-havior changes. We examine two basic incentive models. Based on the results of preliminary experiments, we discuss how economic incentives can affect consumer attitudes and lead to sustainable behavior changes