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Decision Making: Traditional Method

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The process of hypothesis testing based on the traditional method includes calculating the critical value, testing the value of the test statistic using the sample data, and interpreting these values.
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Decision Making

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Strategic decision making in live streaming e-commerce through tripartite evolutionary game analysis.

Yifan Xu¹, Jingyu Qi², Jiahao Kong²

¹School of Management, Fudan University, Shanghai, China.

|July 10, 2024

Summary

This study analyzes live streaming e-commerce, focusing on product quality and after-sales service. It found that incentivizing consumers and streamers, and strategic platform profit-sharing, are key to improving quality and avoiding market failures.

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Area of Science:

E-commerce and Marketing
Game Theory and Behavioral Economics
Consumer Behavior and Supply Chain Management

Background:

Live streaming e-commerce is a rapidly growing market, presenting unique challenges in ensuring product quality and effective after-sales service.
Existing research often overlooks the complex strategic interactions between platforms, consumers, and streamers in this dynamic environment.

Purpose of the Study:

To analyze the strategic interactions among e-commerce platforms, consumers, and streamers in live streaming e-commerce.
To investigate factors influencing product quality and after-sales service decisions within this ecosystem.
To identify optimal strategies for stakeholders to avoid market failures like the prisoner's dilemma.

Main Methods:

Construction of an evolutionary game model involving e-commerce platforms, consumers, and streamers.
Analysis of the stability of equilibrium strategy combinations and influencing factors on decision-making.
Validation of analytical conclusions through simulation analysis.

Main Results:

Consumer adoption of stringent strategies is motivated by reduced quality-issue losses, enhanced compensation, and increased benefits for strict demands.
Streamer selection of high-quality products is promoted by increased benefits, reduced quality issues, or conversely, reduced gains and increased risks for low-quality products.
E-commerce platforms can avert market failures by adjusting profit-sharing to foster collaboration and maintain consumer and streamer engagement.

Conclusions:

Strategic adjustments by all stakeholders are crucial for the sustainable development of the live streaming e-commerce market.
The study provides actionable insights for optimizing interaction strategies and decision-making in live commerce.
Understanding and managing the strategic evolution among platforms, consumers, and streamers is vital for market health.