Evolutionary strategies in live-streaming e-commerce: A four-player game model analysis

Background : Live-streaming e-commerce has boomed during the COVID-19 pandemic, leveraging short video platforms to fulfill social and shopping needs. However, its development is hampered by issues like misleading advertising by hosts, weak consumer protection, and inadequate platform oversight. Objective : This study aims to address these challenges and propose solutions for a healthy live-streaming e-commerce ecosystem. Methods : A four-player game model is constructed, considering interactions between live-streaming hosts, consumers, platforms, and suppliers. MATLAB is employed to analyze the model and identify optimal strategies for each player. Results : The model demonstrates that government regulation is essential. It incentivizes positive behavior from platforms and hosts while balancing consumer protection with potential misuse of complaint systems. Conclusions : Without government regulation, the live-streaming e-commerce industry cannot develop sustainably. This research highlights the importance of a multifaceted approach, including reducing consumer protection costs and implementing proactive government regulations for both platforms and hosts.