Strategic adoption of live streaming in a duopoly under consumer-perceived quality belief updates

Live streaming commerce has revolutionised online retail through real-time product presentation and interactive engagement, mitigating consumer uncertainty about product-perceived quality in traditional e-commerce. However, high operational costs and heterogeneous streamer abilities hinder brands from adopting live streaming in an increasingly competitive market. We develop a Nash game model to study duopoly brands' live streaming adoption under consumer-perceived quality updates. We find that adoption is not universally beneficial: brands favour it when streamer ability is high; at moderate ability, willingness hinges on commission rate; below a critical threshold, both jointly forgo it. Stronger consumer cognitive inertia demands greater streamer effort. This may create a prisoner's dilemma: both brands adopt although mutual non-adoption would be more favourable. Mitigating adverse effects requires reducing product substitutability, enhancing live streaming's impact on customer-perceived quality beliefs, and strengthening streamer ability. When effectively executed, widespread adoption virtually yields a win-win-win-win outcome: brand commercial success, higher consumer surplus, fulfilled government-mandated corporate social responsibility (CSR) objectives, and a sustainable e-commerce ecosystem, highlighting live streaming's potential to align private incentives with public welfare.

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Publication Details

Journal
International Journal of Production Research
Published
2026-10-13
DOI
https://doi.org/10.1080/00207543.2026.2738204
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00

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article

Strategic adoption of live streaming in a duopoly under consumer-perceived quality belief updates

Zhuzhu Song, Huiru Zhang, Qingchun Meng, Xinyu Feng et al.
International Journal of Production Research
Supply Chain and Inventory Management
article

Strategic adoption of live streaming in a duopoly under consumer-perceived quality belief updates

Zhuzhu Song, Huiru Zhang, Qingchun Meng, Xinyu Feng, Pingping Chen
article en

Abstract

Live streaming commerce has revolutionised online retail through real-time product presentation and interactive engagement, mitigating consumer uncertainty about product-perceived quality in traditional e-commerce. However, high operational costs and heterogeneous streamer abilities hinder brands from adopting live streaming in an increasingly competitive market. We develop a Nash game model to study duopoly brands' live streaming adoption under consumer-perceived quality updates. We find that adoption is not universally beneficial: brands favour it when streamer ability is high; at moderate ability, willingness hinges on commission rate; below a critical threshold, both jointly forgo it. Stronger consumer cognitive inertia demands greater streamer effort. This may create a prisoner's dilemma: both brands adopt although mutual non-adoption would be more favourable. Mitigating adverse effects requires reducing product substitutability, enhancing live streaming's impact on customer-perceived quality beliefs, and strengthening streamer ability. When effectively executed, widespread adoption virtually yields a win-win-win-win outcome: brand commercial success, higher consumer surplus, fulfilled government-mandated corporate social responsibility (CSR) objectives, and a sustainable e-commerce ecosystem, highlighting live streaming's potential to align private incentives with public welfare.

International Journal of Production Research
Tongji University (CN), Shandong University (CN), China Agricultural University (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 6%
Supply Chain and Inventory Management
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