Abstract
The Internet of Things (IoT) is emerging as a new communication paradigm and has attracted a significant amount of attention from both academic and engineering communities. In this paper, we consider an IoT market where three roles exist: Wireless Sensor Networks (WSNs), two service providers (SPs) and end users. The WSNs are responsible for sensing and providing data to the two SPs. Based on the sensed data from WSNs, the two SPs compete to provide services to the end users. We model the relationship between the two SPs and end users as a two-stage Stackelberg game, where the two SPs set the prices for their services firstly, and then the end users decide which SP to choose. Specifically, we consider two price-competition scenarios of the two SPs, which are engaged in two games, one is a noncooperative strategic game (NSG) where the two SPs set the prices for services simultaneously, the other is a Stackelberg game (SG) where SP1 who sets the price first is the leader and SP2 who sets the price after is the follower. Each user decides whether and which SP to purchase services from based on prices and service rates. An equilibrium is achieved in each of the two scenarios. Numerical results are conducted to verify our theoretical analysis.
Highlights
The Internet of Things (IoT) is emerging as a new communication paradigm and has attracted a significant amount of attention from both academic and engineering communities
Stackelberg game (SG), where the two service providers (SPs) set the prices for their services in the first stage
In SG, the two SPs set the prices for their services sequentially, while in noncooperative strategic game (NSG), the two SPs set the prices for their services simultaneously
Summary
The Internet of Things (IoT) is emerging as a new communication paradigm and has attracted a significant amount of attention from both academic and engineering communities. In [4], Guijarro et al proposed and analyzed a business model consisting of WSNs, multiple SPs and end users These SPs lease sensed data as services from WSNs and compete to provide services to the end users in an oligopoly IoT market. In [8], the authors proposed a business model, which is composed by WSNs, multiple SPs and end users, for the provision of WSNs-based services They studied the price competition between two SPs providing services to a common pool of end users. Guijarro et al [7] only analyzed the monopoly IoT market without considering the competition between SPs. There are some works proposing business models in cloud service provision, where. We study price competition in an IoT market, where two SPs compete to provide WSNs-based services to a common of end users.
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