Differential Games between a Brand Manufacturer and an Internet Celebrity Regarding Fairness Concerns

Rui Li and Weidong Huang ()
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Rui Li: School of Business, Suzhou University of Science and Technology, Suzhou 215000, China
Weidong Huang: School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, China

Mathematics, 2024, vol. 12, issue 19, 1-21

Abstract: With the rapid growth of social media and live-streaming technology, live-stream selling has become integral to the digital economy. Using differential game theory, this paper examines how fairness concerns impact the profits of internet celebrities and brand manufacturers under the “pure commission” model. We analyzed no fairness concern, gap fairness concern, and self-due fairness concern models, to investigate the optimal decisions and corresponding profits for an internet celebrity and a brand manufacturer. The results show that the internet celebrity earned the highest profits with low commission rates under the self-due fairness concern model, whereas higher commission rates yielded higher profits for the internet celebrity under the gap fairness concern model. Simultaneously, fairness concerns significantly affected the cooperation stability and long-term benefits, motivating the internet celebrity to maintain efficient collaborations with the brand manufacturer. Furthermore, the self-due fairness concern model was more practical than the gap fairness concern model.

Keywords: live streaming; differential game; fairness concern (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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