Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions

The fusion of livestreaming e-commerce and AI technology is booming, and many firms have started to replace human streamers with AI streamers. Despite their popularity, the acceptance of AI streamers by consumers varies widely and the signaling effects of AI streamers still remain unclear. We build...

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Main Authors: Ying Yu, Yunpeng Yang
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Journal of Theoretical and Applied Electronic Commerce Research
Subjects:
Online Access:https://www.mdpi.com/0718-1876/19/4/144
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author Ying Yu
Yunpeng Yang
author_facet Ying Yu
Yunpeng Yang
author_sort Ying Yu
collection DOAJ
description The fusion of livestreaming e-commerce and AI technology is booming, and many firms have started to replace human streamers with AI streamers. Despite their popularity, the acceptance of AI streamers by consumers varies widely and the signaling effects of AI streamers still remain unclear. We build an analytical model and compare scenarios where the acceptance level is either exogenously given or endogenously determined, highlighting the implications for firms’ optimal separation strategy. Our findings suggest that in markets with moderate information asymmetry, using both price and acceptance level as joint signals can be more profitable for high-quality firms. Conversely, in highly asymmetric markets, firms must incur additional costs to distinguish their high-quality products, regardless of the signaling strategy employed. Our paper provides strategic insights for firms aiming to leverage AI streamers in diverse market conditions.
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institution Kabale University
issn 0718-1876
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publishDate 2024-11-01
publisher MDPI AG
record_format Article
series Journal of Theoretical and Applied Electronic Commerce Research
spelling doaj-art-3f1d65b4b004496c8909e796d8b59eef2024-12-27T14:34:28ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762024-11-011942997301610.3390/jtaer19040144Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market ConditionsYing Yu0Yunpeng Yang1Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macao 999078, ChinaAntai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, ChinaThe fusion of livestreaming e-commerce and AI technology is booming, and many firms have started to replace human streamers with AI streamers. Despite their popularity, the acceptance of AI streamers by consumers varies widely and the signaling effects of AI streamers still remain unclear. We build an analytical model and compare scenarios where the acceptance level is either exogenously given or endogenously determined, highlighting the implications for firms’ optimal separation strategy. Our findings suggest that in markets with moderate information asymmetry, using both price and acceptance level as joint signals can be more profitable for high-quality firms. Conversely, in highly asymmetric markets, firms must incur additional costs to distinguish their high-quality products, regardless of the signaling strategy employed. Our paper provides strategic insights for firms aiming to leverage AI streamers in diverse market conditions.https://www.mdpi.com/0718-1876/19/4/144AI streamerssignaling effectslivestreaming e-commerceacceptance level
spellingShingle Ying Yu
Yunpeng Yang
Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
Journal of Theoretical and Applied Electronic Commerce Research
AI streamers
signaling effects
livestreaming e-commerce
acceptance level
title Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
title_full Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
title_fullStr Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
title_full_unstemmed Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
title_short Signaling Effects in AI Streamers: Optimal Separation Strategy Under Different Market Conditions
title_sort signaling effects in ai streamers optimal separation strategy under different market conditions
topic AI streamers
signaling effects
livestreaming e-commerce
acceptance level
url https://www.mdpi.com/0718-1876/19/4/144
work_keys_str_mv AT yingyu signalingeffectsinaistreamersoptimalseparationstrategyunderdifferentmarketconditions
AT yunpengyang signalingeffectsinaistreamersoptimalseparationstrategyunderdifferentmarketconditions