How Should Wanghong Allocate Limited Livestreaming Time with Pricing Tools?
腾讯会议 ID：623 211 486
The joint time allocation and pricing policy for a Wanghong, with a monopoly advertising agency (he) and with competing advertising agencies.
Wanghong is the Chinese word for online celebrities, which creates increasingly huge traffic flow for the video-streaming platforms. A Wanghong (she) may make profits from adverting and/or subscription fee. Since there exists time limit for the length of video or livestreaming, the Wanghong needs to achieve a balance between video contents and advertisements. Meanwhile, the Wanghong makes pricing decisions for advertisements content and subscription fee, to maximize total profit. In this study, we investigate the joint time allocation and pricing policy for a Wanghong, with a monopoly advertising agency (he) and with competing advertising agencies. We consider two types of Wanghong: ``the traditional Wanghong'' and ``the innovative Wanghong''. The traditional Wanghong makes her video content in advance and then searches for advertisements from agencies and the innovative Wanghong simultaneously combines contents and advertisements into her video streaming. For both types of Wanghong, we characterize how their optimal policies and advertising agency's optimal reactions change with the Wanghong-product compatibility, i.e., the effective advertising conversion rate. Moreover, we demonstrate the compatibility's effects on the time allocation, audience number, and Wanghong's and advertising agency's profits. Our findings can help to better manage the business of Wanghong.
Lijun Ma is a full professor in the College of Management at Shenzhen University, P. R. China. He is also affiliated with Institute of Big Data, Intelligent Management and Decision at Shenzhen University. He is associate head of department of Management Science and undergraduate programme director of E-commerce at Shenzhen University. He earned his Ph.D. in system engineering and engineering management from the Chinese University of Hong Kong in 2007. His current research interests include Logistics and supply chain management, service management. He has published more than 40 journal articles in leading ORMS journals such as DS, EJOR, TRE. He serves as an associate editor of Modern Supply Chain Research and Application. He has served as principal investigator for three NSFC grants and co-principal investigator for three NSFC grants.