A Stackelberg Game for Balancing Profits in IoT Ecosystem

Abstract

Service providers and service demanders are the main elements in an IoT ecosystem. The cost, revenue and experience of service (EoS) play a key role in influencing the willingness of service demanders. All the service providers and service demanders compete to maximize their profits respectively. Based on the built Stackelberg game model and profit equilibrium analysis, a two-stage game model with service providers as leaders, demanders as followers are established. The Nash equilibrium of the game model is analyzed in a scenario of IoT ecosystem.