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


The Internet of Things (IoT) has emerged as a new paradigm for the future Internet. In IoT, devices are connected to the Internet and thus are 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, data 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 offer their services as a bundle, attracting more users and achieving higher revenue. Finally, we outline some important open research issues for SDP and IoT.



Pricing, Biological system modeling, Sensors, Internet of Things, Economics, Data models


Copyright 2016 IEEE Network. This is a pre-print version of a published paper that is available at: Recommended citation: Niyato, Dusit, Dinh Thai Hoang, Nguyen Cong Luong, Ping Wang, Dong In Kim, and Zhu Han. "Smart data pricing models for the internet of things: a bundling strategy approach." IEEE Network 30, no. 2 (2016): 18-25. DOI: 10.1109/MNET.2016.7437020. This item has been deposited in accordance with publisher copyright and licensing terms and with the author's permission.