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A Macroeconomic Aspect of IoT Services: Their Marginal Costs

In: Internet of Things

Author

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  • Takafumi Mizuno

    (Meijo University)

Abstract

In macroeconomics, “information” is a copiable product with no additional cost. Despite services on IoT (Internet of Things) treat information, their scalabilities are smaller than other information products. In this chapter, I model IoT services as a composition of information, devices, and electricity and point out that the existence of devices and electricity prevents reducing marginal costs of the services. I mention that the informatization of the computer industry in the past was the replacement of accounting subjects. And I describe that design to scale IoT services is to develop incentives letting others shoulder the costs of devices and electricity.

Suggested Citation

  • Takafumi Mizuno, 2021. "A Macroeconomic Aspect of IoT Services: Their Marginal Costs," International Series in Operations Research & Management Science, in: Fausto Pedro García Márquez & Benjamin Lev (ed.), Internet of Things, chapter 0, pages 85-92, Springer.
    • Handle: RePEc:spr:isochp:978-3-030-70478-0_5
    DOI: 10.1007/978-3-030-70478-0_5
    as

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