Economic feasibility of wireless sensor network-based service provision in a duopoly setting with a monopolist operator

Angel Sanchis-Cano, Julián Romero, Erwin J. Sacoto-Cabrera, Luis Guijarro

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


We analyze the feasibility of providing Wireless Sensor Network-data-based services in an Internet of Things scenario from an economical point of view. The scenario has two competing service providers with their own private sensor networks, a network operator and final users. The scenario is analyzed as two games using game theory. In the first game, sensors decide to subscribe or not to the network operator to upload the collected sensing-data, based on a utility function related to the mean service time and the price charged by the operator. In the second game, users decide to subscribe or not to the sensor-data-based service of the service providers based on a Logit discrete choice model related to the quality of the data collected and the subscription price. The sinks and users subscription stages are analyzed using population games and discrete choice models, while network operator and service providers pricing stages are analyzed using optimization and Nash equilibrium concepts respectively. The model is shown feasible from an economic point of view for all the actors if there are enough interested final users and opens the possibility of developing more efficient models with different types of services.

Original languageEnglish
Article number2727
JournalSensors (Switzerland)
Issue number12
StatePublished - Dec 2017

Bibliographical note

Funding Information:
Acknowledgments: This work was supported by the Spanish Ministry of Economy and Competitiveness through projects TIN2013-47272-C2-1-R and (co-supported by the European Social Fund) BES-2014-068998.

Publisher Copyright:
© 2017 by the authors. Licensee MDPI, Basel, Switzerland.


  • Discrete choice model
  • Game theory
  • Internet of things service provider
  • Nash equilibrium
  • Network economics
  • Population games
  • Pricing
  • Users subscription
  • Wireless sensor networks


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