Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis
This paper explores optimal strategies for manufacturers, streamers, and retailers in a dual-channel environment, focusing on three commission structures and two power structures. Our analysis identifies steady states where dynamic commissions converge, enhancing profitability and stability for all...
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| Format: | Article |
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MDPI AG
2025-04-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
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| Online Access: | https://www.mdpi.com/0718-1876/20/2/61 |
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| author | Tong Wang |
| author_facet | Tong Wang |
| author_sort | Tong Wang |
| collection | DOAJ |
| description | This paper explores optimal strategies for manufacturers, streamers, and retailers in a dual-channel environment, focusing on three commission structures and two power structures. Our analysis identifies steady states where dynamic commissions converge, enhancing profitability and stability for all parties. We find that less dominant partners prefer commission structures that reinforce existing power structures. Profitability is influenced by dynamic commissions: under manufacturer dominance, dynamic wholesale price and commission rate increase profitability for manufacturers and retailers while decreasing streamers’ profits. In contrast, under streamer dominance, a dynamic commission rate enhances streamers’ profits but reduces those of manufacturers and retailers. This evaluation highlights the shared interests between manufacturers and retailers. Taking the spillover effect into account, commission strategies should consider hassle cost, initial commission rate, and spillover impact. Product selection strategies show consistent trends, with moderate hassle cost and a disutility factor ranging from moderate to high, regardless of the spillover effect. |
| format | Article |
| id | doaj-art-5ea3fe36684a45b7b443278640317e36 |
| institution | Kabale University |
| issn | 0718-1876 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj-art-5ea3fe36684a45b7b443278640317e362025-08-20T03:27:33ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762025-04-012026110.3390/jtaer20020061Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism AnalysisTong Wang0Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, ChinaThis paper explores optimal strategies for manufacturers, streamers, and retailers in a dual-channel environment, focusing on three commission structures and two power structures. Our analysis identifies steady states where dynamic commissions converge, enhancing profitability and stability for all parties. We find that less dominant partners prefer commission structures that reinforce existing power structures. Profitability is influenced by dynamic commissions: under manufacturer dominance, dynamic wholesale price and commission rate increase profitability for manufacturers and retailers while decreasing streamers’ profits. In contrast, under streamer dominance, a dynamic commission rate enhances streamers’ profits but reduces those of manufacturers and retailers. This evaluation highlights the shared interests between manufacturers and retailers. Taking the spillover effect into account, commission strategies should consider hassle cost, initial commission rate, and spillover impact. Product selection strategies show consistent trends, with moderate hassle cost and a disutility factor ranging from moderate to high, regardless of the spillover effect.https://www.mdpi.com/0718-1876/20/2/61OR applications in marketing and operationsincentive mechanismmulti-perioddynamic wholesale pricedynamic commission rate |
| spellingShingle | Tong Wang Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis Journal of Theoretical and Applied Electronic Commerce Research OR applications in marketing and operations incentive mechanism multi-period dynamic wholesale price dynamic commission rate |
| title | Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis |
| title_full | Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis |
| title_fullStr | Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis |
| title_full_unstemmed | Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis |
| title_short | Dynamic Pricing and Commission Strategies in Live-Stream: An Incentive Mechanism Analysis |
| title_sort | dynamic pricing and commission strategies in live stream an incentive mechanism analysis |
| topic | OR applications in marketing and operations incentive mechanism multi-period dynamic wholesale price dynamic commission rate |
| url | https://www.mdpi.com/0718-1876/20/2/61 |
| work_keys_str_mv | AT tongwang dynamicpricingandcommissionstrategiesinlivestreamanincentivemechanismanalysis |