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The live-streaming e-commerce mode selection under competition: self-run or third-party?

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Abstract

The popularity of live-streaming (LS) has enforced a great number of e-retailers to introduce such an emerging e-commerce mode. Considering the potential benefits brought by LS e-commerce and the various modes for introducing such a strategy, this study examines three possible modes of LS in a competitive context, namely without LS, third-party LS, and self-run LS. By using a stylized game-theoretical model, we explore the impacts of such a selling strategy on both online and offline retailers’ decisions and profits. Our findings show that when the consumer’s hassle cost for LS shopping is low, the LS selling always results in a price-increase effect on the online retailer, while only the third-party LS would have the same effect on the offline retailer. Moreover, the offline retailer always obtains the highest demand with third-party LS, but the online retailer obtains the lowest one. Most importantly, when the online retailer introduces third-party LS, it might result in a “win–win” situation for both retailers. In addition, we extend the basic model to the case with a more powerful online retailer.

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Notes

  1. https://www.iresearch.com.cn/Detail/report?id=3841&isfree=0.

  2. http:// www.ww01.net/en/archives/ 73,811.

  3. https:// chinamktginsights.com/ paying-100 k-rmb-to- sell-5-thermoses-how-to-avoid-a-celebrity-livestream-horror-story/.

  4. https://report.iresearch.cn/report/202109/3841.shtml.

  5. https://www.sohu.com/a/649354221_120652303.

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Funding

China Postdoctoral Science Foundation [Grant Number: 2021M690654]; Shanghai Sailing Program [Grant Number: 23YF1415600].

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Authors and Affiliations

  1. School of Management, Shanghai University of Engineering Science, Shanghai, 201620, China

    Shanshan Wang

  2. School of Business, Changshu Institute of Technology, No. 99, 3rd South Ring Road, Changshu, 215500, Jiangsu, China

    Junbin Wang

  3. School of Management, Fudan University, Shanghai, 200433, China

    Junbin Wang

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  1. Shanshan Wang
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Wang, S., Wang, J. The live-streaming e-commerce mode selection under competition: self-run or third-party?. Electron Commer Res (2023). https://doi.org/10.1007/s10660-023-09789-z

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