The Role of Prosocial Behavior in Goal Attainment Incentive: Evidence from a Natural Experiment in Live Streaming

Live streaming services have experienced significant growth in recent years. Since revenue on such platforms mainly comes from viewers’ purchases of virtual gifts, it is critical to understand how to motivate viewers’ monetary engagement. This study examines the existence and effect of prosocial behavior on viewers’ monetary engagement in an innovative goal attainment incentive scheme. Utilizing a quasi-natural experiment, we find that the goal incentive scheme can effectively increase viewers’ engagement behaviors. Through the analysis of the moderating effect of a streamer’s number of fans, we discover that goal incentives have a dual impact on viewers’ behavior. Specifically, goal incentives motivate the streamers to put forth more effort, ultimately increasing viewers’ engagement. In addition, goal incentives can directly motivate the viewer’s tipping behavior by influencing prosocial behavior. This research enriches the understanding of the role of prosocial behavior in emerging interactive digital platforms and provides valuable insights for platform operators.