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A hypothetical value function in prospect theory  

A hypothetical value function in prospect theory  

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Conference Paper
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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...

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... to prospect theory, an individual's value function for any kind of gains and losses takes the shape of an asym- metric S, as illustrated in Figure 2. Variable U does not rep- resent actual gains or losses in money, but the utility that a consumer perceives. ...

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