The impact of live streaming on competitive e-commerce

Yucheng Xin, Tijun Fan, Yang Song () and Wenyue Zheng
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Yucheng Xin: East China University of Science and Technology
Tijun Fan: East China University of Science and Technology
Yang Song: Donghua University
Wenyue Zheng: East China University of Science and Technology

Electronic Commerce Research, 2024, vol. 24, issue 2, No 18, 1215-1234

Abstract: Abstract Live streaming e-commerce has been booming in recent years. This paper investigates the pricing and live streaming adoption strategies of competitive e-commerce firms. We consider the differences in product quality and consumer heterogeneity and establish a duopoly competitive Hotelling model. Taking into account consumers’ uncertain perception of product quality and live streaming costs, the equilibrium outcomes are examined. Our findings indicate that (1) e-commerce firms selling high-quality products should consider adopting live streaming, while others should avoid it if consumers hold moderate product quality expectations. (2) E-commerce firms can be more profitable without live streaming when the market expectation or perceived quality of the products is high. (3) If only the e-commerce firm selling high-quality products utilizes live streaming, the optimal price would be lower, even when the product quality is relatively high, provided that the perceived quality is very high.

Keywords: Live streaming; E-commerce; Duopoly; Pricing (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10660-024-09853-2

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