Pricing Research on Cloud Manufacturing Service Based on Game Theory

The pricing of the cloud manufacturing service was critical for the success of service transaction. Firstly, based on the hotelling model, this paper discussed the pricing and revenue of providers on the cloud platform for service trading. In the cloud service transaction, the cloud platform is generally the leader of service providers. Therefore, we further proposed the stackelberg game model, in which the pricing of the manufacturing service was determined by the profit ratio of the cloud platform. Thirdly, basing on the utilization rate of the manufacturing service, we adjusted the determined pricing of manufacturing service dynamically to cope with unpredictable service demand. Finally, we compared the price and benefit between the proposed model and the traditional hotelling model. The result shows that the price and revenue of the manufacturing service are improved by introducing cloud platform. In the future, we should consider demanders' revenue and other factors on the price.