M2M's Impact On Behavioral Economics

Historically, M2M applications were developed to increase the productivity of industrial resources, whether the resource was a fleet of delivery trucks or a remote gas pipeline. However, recent reductions in the cost to deploy M2M technology are enabling more broadbased and consumer-focused applications that have the potential to make a big impact on choices we make in our daily lives that will have positive benefits to individuals and society. Many of these applications, such as pay-asyou- drive (PAYD) auto insurance and smart metering, are driven by the principles of behavioral economics, which is a new field of economic research that looks at how individuals make economic-related decisions.