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Paper Number
1855
Paper Type
Short
Description
Live streaming is adopted by many digital and e-commerce platforms. As a popular way for people to obtain information products and entertainment, live streaming generates tremendous business revenue through pay-as-you-wish gifting (PAYW). As one of the most important channels to earn profits by live streaming hosts, PAYW faces the trouble of free riders who watch live content without payment. To encourage free-rider audiences to pay, some platforms in China have introduced a lottery mechanism, which allows people to get high-value prizes by paying a threshold price. We conduct a quasi-experiment with lottery block on a popular live streaming platform to estimate its causal effect on PAYW gifting. The study identifies heterogeneous effects based on user opportunism and impulsive tendencies. The proposed typology of lottery provides a framework for improving PAYW gifting in live streaming e-commerce.
Recommended Citation
LIN, Qingyuan and Lu, Angela, "The Magic of Lottery: Investigating the PAYW in Live Streaming from Opportunism and Impulsiveness" (2022). ICIS 2022 Proceedings. 10.
https://aisel.aisnet.org/icis2022/digital_commerce/digital_commerce/10
The Magic of Lottery: Investigating the PAYW in Live Streaming from Opportunism and Impulsiveness
Live streaming is adopted by many digital and e-commerce platforms. As a popular way for people to obtain information products and entertainment, live streaming generates tremendous business revenue through pay-as-you-wish gifting (PAYW). As one of the most important channels to earn profits by live streaming hosts, PAYW faces the trouble of free riders who watch live content without payment. To encourage free-rider audiences to pay, some platforms in China have introduced a lottery mechanism, which allows people to get high-value prizes by paying a threshold price. We conduct a quasi-experiment with lottery block on a popular live streaming platform to estimate its causal effect on PAYW gifting. The study identifies heterogeneous effects based on user opportunism and impulsive tendencies. The proposed typology of lottery provides a framework for improving PAYW gifting in live streaming e-commerce.
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21-Digital