We investigate the economics of internet of things (IoT). An economic model of IoT consists of end users, advertisers and three different kinds of providers. We model different kinds of interaction among the providers as a combination of sequential and parallel non-cooperative games. We characterize the equilibrium pricing strategy and payoff of providers and corresponding demands of end users in each such setting. We quantify the impact of advertising revenue on the equilibrium pricing and demands, and compare the payoffs and demands for different interaction models.
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