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This poster discusses a new free-form modeling material called Quimo (Quick Mock-up), designed for use in spatial augmented reality environments. Quimo is a white malleable material that can be sculpted and deformed with bare hands into an approximate model. The material is white in color, retains its shape once sculpted, and allows for later modification. Projecting imagery onto the surface of the low-fidelity mock-up allows for detailed prototype visualizations to be presented.
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Maas et al. (2011) studied this question.
Synapse has enriched one closely related paper. Consider it for comparative context: