Dynamic pricing incentive for participatory sensing

User participation is one of the most important elements in participatory sensing application for providing adequate level of service quality. However, incentive mechanism and its economic model for user participation have been less addressed so far in this research domain. This paper studies the economic model of user participation incentive in participatory sensing applications. To stimulate user participation, we design and evaluate a novel reverse auction based dynamic pricing incentive mechanism where users can sell their sensing data to a service provider with users’ claimed bid prices. The proposed incentive mechanism focuses on minimizing and stabilizing the incentive cost while maintaining adequate level of participants by preventing users from dropping out of participatory sensing applications. Compared with random selection based fixed pricing incentive mechanism, the proposed mechanism not only reduces the incentive cost for retaining the same number of participants but also improves the fairness of incentive distribution and social welfare. It also helps us to achieve the geographically balanced sensing measurements and, more importantly, can remove the burden of accurate price decision for user data that is the most difficult step in designing incentive mechanism.