The Analysis Of The Information Service Pricing In The Internet Of Things Based On The Consumers’ Overconfidence

For the demand of the services market in the Internet of Things and the effect ofindustry cluster are huge, the information service industry of the Internet of Thingshave been obtained the Chinese government promotion, no matter what the policylevel or the change of economic development level is. With the gradual application ofInternet of Things technology in the service industry, the pricing of informationservices will be inevitably involved when it provides information. Therefore, anappropriate pricing scheme service providers, intermediaries and consumers arewilling to accept is particularly important.This paper first introduces the concept of the service industry and its value chainin the Internet of Things, and elaborated the role of the parties and the influencingpricing factors in providing the service of the Internet of Things. On the basis of thecondition of the only one operator and the competition of the two operators, it thendiscuss consumer’s overconfidence to the influence of operator’s returns and pricingstrategy based on between connect-time-based pricing and search-based pricing andbetween the combination of connect-time-based and search-based pricing andsubscription pricing.The results show that when it is different for the consumer’soverconfidence degree for the time to retrieve service under the monopoly condition,whether operators adopt connect-time-based pricing depends on the cost, if thedistribution of Overconfidence degree both the high-and the low-demand consumerare the same, it is optimal to adopt combination pricing, while the operator using thesubscription strategy should satisfy certain conditions. When consumer’soverconfidence is difference under the competition condition, operators choosepricing policies between connect-time-based pricing and search-based pricing, thereexists an equilibrium in which both firms offer different pricing policies. In thecombination pricing and subscription pricing, there is at least symmetric equilibriumin which both servers offer a combination policy, the condition that two asymmetricequilibriums in which one server offers combination pricing and while the otherserver offers subscription pricing are established is the consumers’ overconfidencedegree meet certain conditions. Finally, using intelligent transportation application totest the implementation of pricing model.