Smart data pricing models for the internet of things: a bundling strategy approach

Abstract

Internet of things (IoT) has emerged as a new paradigm for the future Internet. In IoT, enormous devices are connected to the Internet and thereby being a huge data source for numerous applications. In this article, we focus on addressing data management in IoT through using a smart data pricing (SDP) approach. With SDP, data can be managed flexibly and efficiently through intelligent and adaptive incentive mechanisms. Moreover, it is a major source of revenue for providers and partners. We propose a new pricing scheme for IoT service providers to determine the sensing data buying price and IoT service subscription fee offered to sensor owners and service users, respectively. Additionally, we adopt the bundling strategy that allows multiple providers to form a coalition and bid their services as a bundle, attracting more users and achieving higher revenue. Finally, we outline some important open research issues for SDP and IoT.

Retracted: Design and implementation of music teaching assistant platform based on Internet of Things

“…[25][26][27][28][29] (4) A node can communicate with its neighbors in the range of one hop in two directions.…”

Profit Maximization Auction and Data Management in Big Data Markets

“…The authors in [3] develop a subscriptionbased big data market model. The pricing of bundled services is presented in [5].…”

“…As defined in (4), the service provider sets the sale price and the data size to maximize its profit. The natural objective of the customer is to choose a bid that maximizes its utility defined in (5) as the difference between its valuation and price.…”

Economic analysis of wireless sensor-based services in the framework of the Internet of Things. A game-theoretical approach

“…To study the economic viability of a network scenario the users utility and the operators profits should be known, and consequently a pricing scheme is needed. The OP profit maximization problem has been addressed several times in the literature as a pricing problem [87][88][89][90].…”

“…The pricing mechanisms are studied in both articles using game theory and a solution maximizing the platforms' profit is shown to exist. Another approach based on bundling is [87], where several business models are proposed, nevertheless the work is too general and does not analyze the models in depth. The work in [95] proposes several models, where users purchase providers' IoT data through a marketplace and analyzes several economic concepts, such as value and pricing of information.…”