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However, online retailers may encounter challenges such as increased costs and the risk of free\u2010riding, leading to hesitation in adopting this emerging marketing strategy. This paper investigates the factors motivating online retailers\u2019 decisions to introduce livestream channels in a competitive environment. The results reveal that when the differentiation between online retailers is relatively low, both tend to introduce livestream channels. With moderate differentiation, only one online retailer introduces livestream channel as the equilibrium strategy. When differentiation is high enough, neither online retailer introduces livestream channels. Notably, when both online retailers introduce livestream channels, they fall into a prisoner's dilemma. The study also extends the main model to consider the additional utility that consumers gain from viewing livestream, the impact of free\u2010riding behavior, and impulse purchases in livestream rooms. The main conclusions remain consistent across these extensions.<\/jats:p>","DOI":"10.1111\/itor.70047","type":"journal-article","created":{"date-parts":[[2025,5,27]],"date-time":"2025-05-27T09:40:59Z","timestamp":1748338859000},"page":"4275-4314","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["Competitive strategies of online retailers: Should they introduce livestream channels?"],"prefix":"10.1111","volume":"33","author":[{"given":"Keqi","family":"Liu","sequence":"first","affiliation":[{"name":"International Business School Hainan University  Haikou China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-9178-4415","authenticated-orcid":false,"given":"Li","family":"He","sequence":"additional","affiliation":[{"name":"School of Tourism Hainan University  Haikou China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-8838-1810","authenticated-orcid":false,"given":"Yi","family":"He","sequence":"additional","affiliation":[{"name":"International Business School Hainan University  Haikou China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Qingyun","family":"Xu","sequence":"additional","affiliation":[{"name":"School of Economics and Management Tsinghua University  Beijing China"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2025,5,13]]},"reference":[{"issue":"1","key":"e_1_2_8_2_1","first-page":"63","article-title":"Competing with gray markets","volume":"46","author":"Antia K.D.","year":"2004","journal-title":"MIT Sloan Management Review"},{"key":"e_1_2_8_3_1","doi-asserted-by":"publisher","DOI":"10.1111\/poms.12165"},{"key":"e_1_2_8_4_1","doi-asserted-by":"publisher","DOI":"10.1111\/1467-6451.00157"},{"key":"e_1_2_8_5_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.elerap.2022.101150"},{"key":"e_1_2_8_6_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2019.03.013"},{"key":"e_1_2_8_7_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2017.07.069"},{"key":"e_1_2_8_8_1","doi-asserted-by":"publisher","DOI":"10.1002\/mde.4299"},{"key":"e_1_2_8_9_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jretconser.2023.103441"},{"key":"e_1_2_8_10_1","unstructured":"Chernova M. 2018.How brands grow using live streaming: 10 use cases for video marketing. 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