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The interaction between E-tailer’s AI live-stream strategy and supplier encroachment

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  • Xu, Dongyang
  • Chen, Haoran
  • Liu, Baoshan
  • Guan, Xu

Abstract

The rapid advancement of technology has made it easier for the e-tailer’s technology adoption strategy (AI live-stream strategy) and the supplier’s direct-to-consumer sales (encroachment). We employ a game-theoretical framework to examine the strategic interplay of the e-tailer’s AI live-stream decision and the supplier’s encroachment strategy. There are many interesting findings. First, even though the AI live-stream can promote market expansion for the e-tailer, it may still abandon the strategy due to the risk of supplier encroachment when both AI maturity and encroachment cost are at intermediate levels. Second, the e-tailer can strategically adopt AI live-stream to prevent the supplier from encroaching when encroachment cost is small, and AI technology remains either highly mature or moderate-lowly mature. Third, supplier encroachment may compel the e-tailer to invest more or less in AI technology depending on the channel competition and the maturity level of AI technology, but such parameters’ effects are non-monotone. Fourth, if the supplier has the AI live-stream option, it can conditionally benefit from the supplier’s encroachment. Our study provides theoretical insights into e-tailers’ AI live-stream strategy choices in the context of supplier encroachment, highlighting the critical role of AI live-stream strategy in moderating competition in online retailing.

Suggested Citation

  • Xu, Dongyang & Chen, Haoran & Liu, Baoshan & Guan, Xu, 2026. "The interaction between E-tailer’s AI live-stream strategy and supplier encroachment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:transe:v:205:y:2026:i:c:s1366554525005605
    DOI: 10.1016/j.tre.2025.104532
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