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Strategic decision making in live streaming e-commerce through tripartite evolutionary game analysis

Author

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  • Yifan Xu
  • Jingyu Qi
  • Jiahao Kong
  • Weisi Zhang

Abstract

This article delves into the current popular phenomenon of live streaming e-commerce, with a specific focus on issues related to product quality and after-sales service. It constructs an evolutionary game model that encompasses three key stakeholders: e-commerce platforms, consumers, and streamers. The study conducts a thorough analysis of the interactions and strategic choices among these entities, investigating the stability of equilibrium strategy combinations within the game system and the influence of various factors on decision-making behaviors. Furthermore, the validity of the analytical conclusion is corroborated through the application of simulation analysis methods. The study finds that for the consumer, strategies such as reducing losses encountered due to quality issues under strict demands, enhancing compensation in these scenarios, and increasing benefits for maintaining stringent requirements during live streaming sessions can motivate them to adopt more stringent strategies. For the streamer, essential factors in promoting the selection of high-quality products include increasing the benefits associated with such choices and reducing the probability of quality issues, or alternatively, decreasing the gains from lower-quality selections and increasing the likelihood of encountering quality problems with these products. For the e-commerce platform, strategically adjusting the profit-sharing ratio to maintain collaborative momentum and influence the enthusiasm of both consumers and streamers is a critical strategy to avert market scenarios akin to prisoner’s dilemmas and tragic outcomes. Overall, this research offers profound insights into the complex strategic evolution within the live commerce market, providing valuable guidance for interaction strategies among e-commerce platforms, consumers, and streamers. Its implications for practical decision-making optimization and strategic formulation are of significant importance.

Suggested Citation

  • Yifan Xu & Jingyu Qi & Jiahao Kong & Weisi Zhang, 2024. "Strategic decision making in live streaming e-commerce through tripartite evolutionary game analysis," PLOS ONE, Public Library of Science, vol. 19(7), pages 1-32, July.
    • Handle: RePEc:plo:pone00:0305427
    DOI: 10.1371/journal.pone.0305427
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