Live-stream promotions often generate cross-period spillover effects beyond the broadcast, offering manufacturers continued exposure and promotional benefits. Dominant streamers may thus seek control over product pricing, leading to pricing power disputes with manufacturers. This paper investigates how spillover effects and power structures influence manufacturers' live-streaming strategies and pricing power disputes.
We develop a two-period differentiated-channel supply chain model to capture the real-time characteristics and spillover effects of live-streaming. The manufacturer sells through live-streaming and retail channels during the first period and exclusively via retail channel thereafter. Optimal channel sales and streamer service effort are derived using backward induction.
(1) Considering spillover effects, pricing power is not always beneficial for live-stream participants. Preferences for pricing power are significantly shaped by power and cost structures. (2) Imbalanced power structures exacerbate pricing power conflicts, whereas balanced power facilitates pricing power consensus, motivates streamer effort and enhances supply chain performance. (3) Under specific conditions, cost-sharing, shareholding and side-payment contracts effectively mitigate pricing power conflicts.
Our model captures the interaction between spillover effects and pricing power allocation, offering theoretical guidance for optimizing long-term live-stream operations. Our findings contribute to resolving pricing conflicts in live-stream selling and encourage the use of pricing power as a strategic lever to improve promotional efficiency, thereby supporting the sustainable development of live-stream commerce.
