1. Capitalize Your Data: Optimal Selling Mechanisms for IoT Data Exchange
- Author
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Zun Li, Zhenzhe Zheng, Fan Wu, Shaojie Tang, Zhao Zhang, Qinya Li, and Guihai Chen
- Subjects
Uncertain data ,Computer Networks and Communications ,Computer science ,business.industry ,Interface (computing) ,media_common.quotation_subject ,Cloud computing ,Purchasing ,Supply and demand ,Risk analysis (engineering) ,Data exchange ,Data quality ,Quality (business) ,Electrical and Electronic Engineering ,business ,Software ,media_common - Abstract
More and more IoT data is being traded online in cloud-based data marketplaces due to the fast-growing market demand. Within the current data selling mechanisms, data consumers have difficulties in making purchasing decisions due to uncertain data quality and inflexible pricing interface. To resolve them, potential solutions could be to launch data demonstrations and release free sampling data to reduce the uncertainty about data quality, and to charge based on the volume of data for enabling flexible pricing. However, their economic benefits are still not clear. In this paper, we design the optimal data selling mechanisms for IoT data exchange, and derive the following results. First, whether to deploy data demonstrations and how much free sampling data to release depend on the extent of data consumers inaccuracy perceptions for data quality. We found that data vendors have no incentive to conduct these strategies if data consumers extremely overestimate data quality. Second, although flexible data pricing mechanisms provide convenience for real-time and streaming IoT data exchange, it brings less economic benefits to data vendors compared with fixed pricing schemes. We evaluate the optimal selling mechanisms on a real-world Taxi GPS dataset. Evaluation results verify the insights derived from our theoretical analysis.
- Published
- 2023
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