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Pricing Decision Analysis for Information Services of the Internet of Things Based on Stackelberg Game

In: Liss 2012

Author

Listed:
  • Lijun Mei

    (Hunan University)

  • Wei Li

    (Hunan University)

  • Kai Nie

    (Hunan University)

Abstract

In order to study the pricing of information service market in the Internet of Things, we construct a pricing model based on Stackelberg game by Intermediaries and information providers. On this basis, the optimal strategies of information service providers and Intermediaries are obtained by game theory. Then, according to the results of numerical simulation we draw the conclusions that if the price of intelligent terminal equipment is expensive, the information provider shall adopt pure bundling strategy, whereas take pure components strategy. While the variation of evaluation value for consumer information products becomes bigger, pure bundling strategy should be taken by the information service providers. When the information provider wants to adopt pure components strategy, then the variation of evaluation value for consumer information products should be satisfied by certain conditions.

Suggested Citation

  • Lijun Mei & Wei Li & Kai Nie, 2013. "Pricing Decision Analysis for Information Services of the Internet of Things Based on Stackelberg Game," Springer Books, in: Zhenji Zhang & Runtong Zhang & Juliang Zhang (ed.), Liss 2012, edition 127, pages 1097-1104, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-32054-5_155
    DOI: 10.1007/978-3-642-32054-5_155
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