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Sensors 2017, 17(12), 2727; https://doi.org/10.3390/s17122727

Economic Feasibility of Wireless Sensor Network-Based Service Provision in a Duopoly Setting with a Monopolist Operator

1
ITACA, Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain
2
GIHP4C, Universidad Politécnica Salesiana-Sede Cuenca, Calle Vieja 12-30 y Elia Liut, 010102 Cuenca, Ecuador
*
Author to whom correspondence should be addressed.
Received: 20 October 2017 / Revised: 17 November 2017 / Accepted: 22 November 2017 / Published: 25 November 2017

Abstract

We analyze the feasibility of providing Wireless Sensor Network-data-based services in an Internet of Things scenario from an economical point of view. The scenario has two competing service providers with their own private sensor networks, a network operator and final users. The scenario is analyzed as two games using game theory. In the first game, sensors decide to subscribe or not to the network operator to upload the collected sensing-data, based on a utility function related to the mean service time and the price charged by the operator. In the second game, users decide to subscribe or not to the sensor-data-based service of the service providers based on a Logit discrete choice model related to the quality of the data collected and the subscription price. The sinks and users subscription stages are analyzed using population games and discrete choice models, while network operator and service providers pricing stages are analyzed using optimization and Nash equilibrium concepts respectively. The model is shown feasible from an economic point of view for all the actors if there are enough interested final users and opens the possibility of developing more efficient models with different types of services. View Full-Text
Keywords: internet of things service provider; network economics; pricing; game theory; population games; discrete choice model; Nash equilibrium; users subscription; wireless sensor networks internet of things service provider; network economics; pricing; game theory; population games; discrete choice model; Nash equilibrium; users subscription; wireless sensor networks
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Sanchis-Cano, A.; Romero, J.; Sacoto-Cabrera, E.J.; Guijarro, L. Economic Feasibility of Wireless Sensor Network-Based Service Provision in a Duopoly Setting with a Monopolist Operator. Sensors 2017, 17, 2727.

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