Title: The pricing decisions for the cloud service supply chain: service quality and power structure

Authors: Mengdi Yao; Guolong She; Donglin Chen; Song Ke

Addresses: School of Law and Economics, Wuhan University of Science and Technology, Wuhan 430065, China ' College of Social Science, University of Ottawa, Ottawa 66067, Canada ' School of Economics, Wuhan University of Technology, Wuhan 430070, China ' School of Law and Economics, Wuhan University of Science and Technology, Wuhan 430065, China

Abstract: The cloud service supply chain is a current paradigm that enables cloud service to meet the complex and diverse combination needs of cloud users and promote the development of the cloud computing industry. In this research, we construct a two-level supply chain structure composed of infrastructure service providers and cloud software service providers and study the balanced pricing decisions of all cloud service supply chain entities under different subject positions. This paper analyses the impact of different market structures, competition intensity, service quality, and other factors on the equilibrium price. We can conclude that when the market competition intensity is strong, the supply chain members are more willing to choose their leading structure; the replacement rate of products will increase the level of cloud service quality and the price. Under different market competition intensities, when the cloud software service provider dominates, it will choose a lower-price strategy to reduce the impact of the increase in service substitution rate. Our conclusions can help enterprises formulate pricing strategies to meet the needs of different users' service quality.

Keywords: cloud service supply chain; optimal pricing decision; cloud service composition quality; Stackelberg game.

DOI: 10.1504/IJSNET.2023.132542

International Journal of Sensor Networks, 2023 Vol.42 No.3, pp.183 - 195

Received: 27 Apr 2023
Accepted: 29 Apr 2023

Published online: 27 Jul 2023 *

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