Competition and cooperation between participants of the internet of things industry value chain

Abstract

This paper constructs the model of the Internet of Things industry value chain and examines the profits distribution of different participants in the value chain, and aims to provide insight into the choice of competition and cooperation between them. Competition and cooperation models on the Internet of Things industry were constructed and analyzed. Using game theory we show that cooperation can emerge as a result of rational profit maximizing behavior and in competition industry dominant role was recommended for making more profit. The implications for industrial policy are also presented.