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.
Authors
- Zhuzhu Song (ORCID: https://orcid.org/0000-0002-8289-7872)
- Huiru Zhang
- Qingchun Meng
- Xinyu Feng
- Pingping Chen
Institutions
- Tongji University (CN)
- Shandong University (CN)
- China Agricultural University (CN)
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
Funders
- National Natural Science Foundation of China