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

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  • Shanshan Wang

    (Shanghai University of Engineering Science)

  • Junbin Wang

    (Changshu Institute of Technology
    Fudan University)

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.

Suggested Citation

  • Shanshan Wang & Junbin Wang, 2025. "The live-streaming e-commerce mode selection under competition: self-run or third-party?," Electronic Commerce Research, Springer, vol. 25(4), pages 3261-3282, August.
    • Handle: RePEc:spr:elcore:v:25:y:2025:i:4:d:10.1007_s10660-023-09789-z
    DOI: 10.1007/s10660-023-09789-z
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