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Optimal decisions and coordination of live streaming selling under revenue‐sharing contracts

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  • Haoyu Liu
  • Shulin Liu

Abstract

Live streaming selling is setting off new waves worldwide, especially in China. Considering the effects of number of viewers and average reference price, this paper investigates the optimal decisions of platform's recommending effort and streamer's selling effort by differential game theory. We find that if the platform sets a higher revenue‐sharing rate, its effort to recommend streamer will decrease, which could reduce the platform's and streamer's revenues. Thus, we propose a subsidy mechanism that incentivizes the streamer to increase investments in platform's recommendations, while enabling the platform and the streamer to achieve a win–win situation by setting reasonable revenue‐sharing rates.

Suggested Citation

  • Haoyu Liu & Shulin Liu, 2021. "Optimal decisions and coordination of live streaming selling under revenue‐sharing contracts," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 1022-1036, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:1022-1036
    DOI: 10.1002/mde.3289
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    References listed on IDEAS

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    Cited by:

    1. Zhimin Wang & Jing Li & Panpan Chen, 2022. "Factors influencing Chinese flower and seedling family farms’ intention to use live streaming as a sustainable marketing method: an application of extended theory of planned behavior," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4299-4322, March.
    2. Yuyang Tan & Chunxiang Guo & Dong Cai, 2023. "Value‐added service decision and coordination under fresh produce e‐commerce considering order cancelation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2199-2210, June.
    3. Zhang, Yanfen & Xu, Qi & Zhang, Guoqing, 2023. "Optimal contracts with moral hazard and adverse selection in a live streaming commerce market," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).

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