LISS 2012 pp 1097-1104 | Cite as

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

Conference paper


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.


Internet of things Pure components Pure bundling Information services pricing 



This study was supported by philosophy social science fund of Hunan province (2010YBA048), general project of the ministry of education on humanities and social science research (11YJC790084) and Research fund for the Doctoral Program of higher education (20110161120032).


  1. 1.
    Bucherer E, Uckelmann D (2010) Business models for the internet of things [A]. Architecting the internet of things [C]. University of Cambridge Press, Cambridge, pp 252–279Google Scholar
  2. 2.
    Fleisch E (2010) What is the internet of things. Bus Process Appl 2:1–27Google Scholar
  3. 3.
    Bohli J-M, Sorge C, Westhoff D (2009) Initial observations on economics, pricing, and penetration of the internet of things market. Comput Commun Rev 39(2):50–55CrossRefGoogle Scholar
  4. 4.
    Taoliang W, Li Y (2010) Application of the internet of things: demand oriented [J]. China Telecommun Ind 7(115):44–45Google Scholar
  5. 5.
    Jain S, Kannan PK (2002) Pricing of information products on online servers: issues, models, and analysis. Manag Sci 9(48):1123–1142CrossRefGoogle Scholar
  6. 6.
    Choudhary V (2010) Use of pricing schemes for differentiating information goods. Inf Syst Res 21(1):78–92CrossRefGoogle Scholar
  7. 7.
    Chui M, Löffer M, Roberts R (2010) The internet of things. McKinsey Q 2:1–9Google Scholar
  8. 8.
    Decker C, Berchtold M, Leonardo Weiss F (2009) Cost-benefit model for smart items in the supply chain. Commun Assoc Inf Syst 5:213–231Google Scholar
  9. 9.
    Zhang Yu, Tang Xiaowo, Zhong Lin (2008) Study of online information goods bundle pricing. J Syst Eng 28(3):331–337Google Scholar
  10. 10.
    Venkatesh R, Wagner K (2003) Optimal bundling and pricing under a monopoly: contrasting complements and substitutes from independently valued products. J Bus 76(4):21l–231Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.College of Economic and TradeHunan UniversityChangshaChina

Personalised recommendations