SDP research papers can be roughly categorized by the different types of pricing that they investigate. We consider 15 such topics here. If you know of a paper we missed, let us know.

Pricing the Internet of Things (5)

The “Internet of Things” refers to the proliferation of devices with Internet connections, from appliances like smart thermostats, to health monitoring apps and cars with built-in sensors. While relatively research papers have considered the pricing of these devices’ data usage, as the Internet of Things becomes larger and more popular, pricing its data usage will become a more pressing problem in research and in practice.

Recently numerous sensing applications from the Internet of Things(IoT), such as traffic monitoring and noise map making, require the expensive installation cost. To handle this challenge, crowd sensing, as a new paradigm, has received extensive concerns. To achieve good service quality, incentive mechanisms are necessary to attract more users to participate in crowd sensing. However, Traditional incentive mechanisms such as the Vickrey-Clarke-Groves (VCG) mechanism and its variants, are not applicable for practical continuous crowd sensing applications, where bids cannot be solicited and only posted pricing mechanisms can be implemented. To tackle the issue, we propose a novel crowd sensing framework by applying all-pay auctions, and then design a collection-behavior based multi-parameter posted pricing mechanism by applying crowd aversion and posted pricing mechanisms. Simulation results indicate that incentive mechanisms in our proposed framework outperform the existing solution with respect to user participation and submission quality.

[Link]

Pricing for profit in internet of things

A. Ghosh, S. Sarkar  Proceedings of IEEE ISIT, 2015

We investigate the economics of internet of things (IoT). An economic model of IoT consists of end users, advertisers and three different kinds of providers. We model different kinds of interaction among the providers as a combination of sequential and parallel non-cooperative games. We characterize the equilibrium pricing strategy and payoff of providers and corresponding demands of end users in each such setting. We quantify the impact of advertising revenue on the equilibrium pricing and demands, and compare the payoffs and demands for different interaction models.

[Link]

Initial observations on economics, pricing, and penetration of the internet of things market

J.-M. Bohli, C. Sorge, and D. Westhoff  ACM SIGCOMM Computer Communication Review, 39(2), 50-55, 2009

One expectation about the future Internet is the participation of billions of sensor nodes, integrating the physical with the digital world. This Internet of Things can offer new and enhanced services and applications based on knowledge about the environment and the entities within. Millions of micro-providers could come into existence, forming a highly fragmented market place with new business opportunities to offer commercial services. In the related field of Internet and Telecommunication services, the design of markets and pricing schemes has been a vital research area in itself. We discuss how these findings can be transferred to the Internet of Things. Both the appropriate market structure and corresponding pricing schemes need to be well understood to enable a commercial success of sensor-based services. We show some steps that an evolutionary establishment of this market might have to take.

[Link]

Initial observations on economics, pricing, and penetration of the Internet of Things market

J.-M. Bohli, C. Sorge and D. Westhoff  ACM SIGCOMM Computer Communication Review, 39(2): 50—55, 2009

One expectation about the future Internet is the participation of billions of sensor nodes, integrating the physical with the digital world. This Internet of Things can offer new and enhanced services and applications based on knowledge about the environment and the entities within. Millions of micro-providers could come into existence, forming a highly fragmented market place with new business opportunities to offer commercial services. In the related field of Internet and Telecommunication services, the design of markets and pricing schemes has been a vital research area in itself. We discuss how these findings can be transferred to the Internet of Things. Both the appropriate market structure and corresponding pricing schemes need to be well understood to enable a commercial success of sensor-based services. We show some steps that an evolutionary establishment of this market might have to take.

[Link]

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.

[Link]