Analysis of Cloud Providers' Pricing Strategy based on extended Hotelling Model

Abstract

As more and more cloud providers attracting users to participate in technological innovation activities, we use the extended Hotelling model to analyze the influence of user participation on cloud provider's equilibrium price , profits and competitive strategy from the perspective of cloud market competition. On the basis of these, we apply the relevant knowledge of game theory and consider the costs and performance of user participation in innovation. In this paper, we conclude that user participation in innovation strategy can help cloud providers to make the reasonable strategy and obtain competitive advantage.