<p>In the digital economy era, live streaming e-commerce has transformed agricultural supply chains by enhancing farmers’ direct sales capabilities. However, selecting the optimal sales channel while balancing quality, profitability, and consumer welfare under different yield scale remains a significant challenge. This study develops a sequential game model to analyze three sales modes—reselling, direct selling, and hybrid selling—under wholesale price contract and yield scale constraints. Our analysis reveals several critical insights: the reselling mode fails to improve quality and leads to an “increased production without increased income” dilemma beyond a certain output threshold; the direct selling mode exhibits a positive correlation between quality and yield scale, outperforming other modes in quality and consumer surplus, though it is not always the farmer’s preferred choice; in the hybrid mode, channel competition benefits the farmer only at low yield scale, while adversely affecting the farmer and the intermediary at higher output levels; and the reselling mode maximizes the farmer’s profit under low yield scale, whereas the hybrid mode becomes more advantageous as yield scale increases and sales cost decreases. We further demonstrate a shift to revenue-sharing contracts, while improving certain economic outcomes, still does not achieve Pareto improvement or quality incentives. By incorporating consumer heterogeneity, we also identify how sales capability and time cost distinctly influence the farmer’s profit and consumer welfare. This research offers a differentiated channel-selection framework for farmers based on yield scale, while providing policymakers with theoretical foundations to optimize agricultural distribution systems, coordinate multi-channel development, and enhance social welfare.</p>

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A game-theoretic perspective on channel selection for agricultural products under yield scale constraints in live streaming e-commerce: quality, welfare, and equilibrium selection

  • Haiyan Li,
  • Jianlong Gu,
  • Zhenjiang Chen,
  • Xiaodong Yu,
  • Haijun Shuang,
  • Linyue Wen

摘要

In the digital economy era, live streaming e-commerce has transformed agricultural supply chains by enhancing farmers’ direct sales capabilities. However, selecting the optimal sales channel while balancing quality, profitability, and consumer welfare under different yield scale remains a significant challenge. This study develops a sequential game model to analyze three sales modes—reselling, direct selling, and hybrid selling—under wholesale price contract and yield scale constraints. Our analysis reveals several critical insights: the reselling mode fails to improve quality and leads to an “increased production without increased income” dilemma beyond a certain output threshold; the direct selling mode exhibits a positive correlation between quality and yield scale, outperforming other modes in quality and consumer surplus, though it is not always the farmer’s preferred choice; in the hybrid mode, channel competition benefits the farmer only at low yield scale, while adversely affecting the farmer and the intermediary at higher output levels; and the reselling mode maximizes the farmer’s profit under low yield scale, whereas the hybrid mode becomes more advantageous as yield scale increases and sales cost decreases. We further demonstrate a shift to revenue-sharing contracts, while improving certain economic outcomes, still does not achieve Pareto improvement or quality incentives. By incorporating consumer heterogeneity, we also identify how sales capability and time cost distinctly influence the farmer’s profit and consumer welfare. This research offers a differentiated channel-selection framework for farmers based on yield scale, while providing policymakers with theoretical foundations to optimize agricultural distribution systems, coordinate multi-channel development, and enhance social welfare.