Optimal Pricing Model of IoT Data Market Based on Profit Maximization

The growth of the Internet of Things(IoT) equipment business encourages the collection of large sizes of data. IoT data is being regarded as a new digital asset which contains valuable information.As a result, IoT data transactions are gaining in popularity, and data markets are starting to emerge.To support the smooth flow of data transactions, several academics offer market models and pricing techniques from various perspectives. However, the factors considered in the pricing model are still not comprehensive enough, and the willingness to sell of data providers has been ignored. Therefore, this paper investigates the pricing and profit maximization problems for the IoT data market who considers the willingness of data providers as well as data quality when purchasing data. Firstly, we analyze the factors that impact data providers' willingness to sell and give a definition of the willingness function.Secondly, we propose a data quality evaluation method and define a joint utility function based on data size and data quality. In addition, we build the profit function model of data market and give theoretical analysis. Finally, numerical experiments demonstrate that the suggested pricing mechanism can benefit the data market participants the most.