Optimal Power Structure and Operational Incentives in Live-Streaming Commerce: A Game-Theoretic Analysis of Streamer Influence

The rapid evolution of live-streaming commerce has reshaped retail supply chains, shifting market dominance from manufacturers to influential streamers. Despite this shift, the internal mechanisms of selling efforts and paid traffic acquisition remain underexplored. To bridge this theoretical gap, we develop a game-theoretic framework to model the endogenous power structure and compare the streamer-led top-tier (KS) mode and the brand-led ordinary (MS) mode. Our analytical results reveal three key theoretical insights. First, we establish strict positive monotonicity between streamer influence and equilibrium decisions. Regardless of the power structure, an increase in influence consistently drives the streamer to intensify operational inputs while simultaneously inducing the brand to raise the direct selling price. Second, consumer sensitivity acts as a positive driver of the top-tier mode. Higher sensitivity motivates the streamer to scale up sales efforts and paid-traffic volume, which corresponds to an optimal increase in the brand’s retail price. Moreover, the top-tier mode exhibits negative sensitivity to operational costs. We prove that rising costs lead to a significant reduction in the streamer’s operational portfolio and, consequently, to a decrease in the brand’s price, indicating that the high-input equilibrium is constrained by cost frictions. From a managerial perspective, numerical experiments reveal not a “Consensus on Scale” but a “Conflict on Structure.” Specifically, brands maximize profit by collaborating with top-tier streamers, while streamers maximize profit by attaining top-tier influence. However, the brand receives more profit by relinquishing channel leadership with respect to the decision hierarchy. In contrast, the streamer is less profitable as a leader than as a follower due to the “leadership trap,” in which greater operational burdens outweigh first-mover advantages.