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The impact of live streaming on competitive e-commerce

Author

Listed:
  • 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)

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.

Suggested Citation

  • Yucheng Xin & Tijun Fan & Yang Song & Wenyue Zheng, 2024. "The impact of live streaming on competitive e-commerce," Electronic Commerce Research, Springer, vol. 24(2), pages 1215-1234, June.
    • Handle: RePEc:spr:elcore:v:24:y:2024:i:2:d:10.1007_s10660-024-09853-2
    DOI: 10.1007/s10660-024-09853-2
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