1. Introduction
With the rapid development of the Internet, the e-commerce industry in the field of fresh agricultural products has gradually emerged. Especially in recent years, live streaming e-commerce has developed rapidly and become a significant sales avenue for fresh agricultural products. Evidence from major promotional events illustrates its expanding influence: during the “Tmall 618” campaign (a major mid-year online shopping festival hosted by Alibaba’s Tmall platform), the fresh food category saw a GMV growth rate exceeding 261%, attributable to live streaming (
https://baijiahao.baidu.com/s?id=1802257171027885821&wfr=spider&for=pc accessed on 12 December 2024). Influencer collaborations, such as that between YouTube creator Ann Reardon and the brand HelloFresh, have further demonstrated the model’s capacity to enhance brand visibility and sales (
https://www.cifnews.com/article/158422 accessed on 12 December 2024).
However, this sales model also presents significant challenges. Some live streaming platforms face considerable quality control risks in product selection, and instances of selling inferior products as premium ones have been reported. Moreover, the channel dominance exerted by head streamers can compress suppliers’ profit margins and potentially disincentivize investments in innovation of preservation technology and green technology, thereby affecting product sustainability and long-term supply chain resilience. Thus, identifying suitable online sales channels for fresh agricultural suppliers remains an important research question.
Amidst heightened governmental and consumer focus on food safety, the greenness of fresh agricultural products has become a decisive factor influencing. According to the definition of China’s Ministry of Agriculture and Rural Development (
http://www.moa.gov.cn/nybgb/2012/dbaq/201805/t20180516_6142243.htm accessed on 12 December 2024), agricultural product greenness quantifies nutritional value and the environmental and health impacts of production chemical residues (e.g., pesticides, heavy metals). Higher greenness indicates greater nutritional value, lower environmental pollution, and reduced health risks from residues, serving as a key differentiator from conventional products. This paper terms supplier’s effort to enhance product greenness as “green technology investment effort”. Additionally, given product perishability and consumer preference for freshness, suppliers must continuously enhance preservation technology to prevent spoilage, while downstream retailers must execute rigorous freshness screenings. Examples include the supplier adopting advanced nano-preservation films and vacuum pre-cooling instead of basic refrigeration, or e-platform like Kuaishou (a short-video and live streaming e-commerce platform in China) conducting random inspections through certified third-party agencies (
https://mp.weixin.qq.com/s?__biz=Mzg5NzcyMDg2Nw==&mid=2247492437&idx=2&sn=550b982ef6719a3ee15c3b5d59a2754a&chksm=c06fd419f7185d0fd9050c5d1323bda22cf3b0a771d8cbd1fc1707dcf1139822669eacd0b4e8&scene=27 accessed on 12December 2024). This paper defines such practices as “supplier preservation technology investment effort” and “downstream retailer freshness detection effort” [
1]. So, how should a fresh agricultural supplier allocate resources between preservation and green technologies? How should downstream retailers determine freshness detection effort to maximize profits? And crucially, how do consumer preferences for preservation technology level versus greenness impact the equilibrium strategies of supply chain participants?
To address these issues above, our research primarily focuses on the following three questions:
- (1)
For fresh agricultural product suppliers, is it more advantageous to sell on an e-commerce platform or through live streaming sales?
- (2)
If a fresh agricultural product supplier chooses live streaming sales, would partnering with a head streamer or an ordinary streamer yield greater profitability?
- (3)
Do preferences regarding preservation technology level and environmental sustainability influence fresh product suppliers’ decisions on different sales channels?
In order to answer these questions, we build a two-echelon supply chain, which consists of a fresh agricultural supplier, an e-commerce platform or streamers, and use differential game theory to analyze the dynamic evolution of preservation technology level and greenness. We also analyze the changes in profit in different channels, so as to help suppliers make decisions. This paper contributes in the following three aspects: First, we develop a dynamic revenue optimization model for fresh agricultural supply chains, identifying key thresholds for suppliers’ choices among three sales modes—e-commerce platform, head streamer, and ordinary streamer—and clarifying the profit boundaries and applicable conditions of each mode. Second, by incorporating two state variables: preservation technology level and product greenness, we find the relationship between the state variables and supply chain participants’ marginal profit, and freshness detection effort, respectively. This finding systematically reveals the dynamic formation pathways of quality attributes in multi-modal sales environments for fresh agricultural products, advancing beyond prior research that often focused on single quality dimensions or static analysis. Third, we extract practically actionable managerial insights: suppliers should dynamically adjust their sales modes according to marginal profit levels and cost structures, and balance short-term gains with long-term green transition goals in markets where consumer preference for freshness significantly outweighs that for green attributes. These contributions not only provide quantitative support for sales-mode decision making by fresh agricultural suppliers but also offer theoretical foundations for promoting the sustainable development of the live streaming e-commerce industry.
The rest of this paper is organized as follows.
Section 2 reviews the relevant literature and highlights the innovation and contribution of this paper.
Section 3 introduces the model setting in this study. In
Section 4, we derive the optimal results of the three models, followed by a comparative analysis in
Section 5.
Section 6 provides a detailed numerical analysis of the equilibrium results. In
Section 7, we extend the original model and consider two dual channels. Finally,
Section 8 concludes the paper, discusses managerial implications, and summarizes directions for future research.
3. Model Assumption and Symbol Introduction
We investigated a fresh agricultural supply chain system encompassing two sales models: an e-commerce platform and live streaming. In the P-model (e-commerce platform sales), the supplier first invests in preservation technologies and green technologies to enhance the quality of fresh agricultural products, which are subsequently sold on the e-commerce platform. In the live streaming sales model, the supplier may opt for either the H-model (head streamer sales) or the N-model (ordinary streamer sales) for product sales. It is crucial to note that within both the P-model and H-model, the platform or the head streamer conducts freshness detection on products to ensure their high quality, which in turn drives supplier to improve their preservation technology levels to meet the product requirements set by the platform or the head streamer.
Figure 1 shows the structure of the fresh agricultural supply chain.
Table 2 provides the specific definitions of all parameters and variables mentioned in the text.
This study develops an infinite-horizon differential game model with two state variables: preservation technology level F(t) and the product greenness G(t). Differential game theory is adopted because it captures the dynamic and strategic interaction among supply chain members over time, allowing us to analyze how their decisions on technology investment and quality control evolve under long-term incentives. Their dynamic evolution draws on the classical Nerlove–Arrow capital accumulation model [
36]: state variables are enhanced through strategic investments and efforts, with the marginal contribution of each investment measured by specific coefficients (e.g., α, β, θ). At the same time, state variables undergo natural depreciation at constant rates, denoted by the decay rates ξ and δ. Setting the decay rates as constants captures the diminishing-value characteristic of the state variables while preserving the model’s analytical tractability. From a managerial perspective, constant decay simplifies the planning of recurring investments while still representing the erosion of technological and green advantages over time. The infinite-horizon setting directs players’ attention to long-term gains and facilitates the analysis of the system’s long-run stable equilibrium.
This study employs a linear demand function and assumes constant decay rates, primarily for the sake of theoretical simplicity and analytical tractability. These classic assumptions allow us to derive clear analytical solutions for the relationship between technology investment and profit under different sales models and to distill interpretable decision thresholds. Admittedly, these simplifying assumptions impose limitations on capturing real-world complexity. Relaxing these assumptions—for instance, by introducing demand nonlinearity or time-varying decay rates—would increase the difficulty of solving the model but could further uncover phenomena such as diminishing marginal returns on technology investment, synergies between green and preservation factors, and strategic adjustments in dynamic environments, offering a richer perspective for understanding the long-term evolution of supply chains.
Based on the above contents and the research of Ma et al. and Zhang et al., the higher the level of preservation technology, the better the freshness of products and the longer the preservation time [
1,
28]. We describe the dynamic change process of supplier’s fresh-keeping technology level as follows
where
denotes the preservation technology level at time t,
represents the rate of change in the level of preservation technology with time,
represents the preservation technology investment effort (PTIE) of suppliers, and
represents the freshness detection effort (FDE) of downstream retailers,
denote the effect coefficients of the preservation technology investment efforts and freshness detection efforts on the preservation technology level [
1,
28,
37]. They reflect the efficiency with which investment is converted into technological improvement. A larger value of α and β indicates that each unit of effort invested by the supplier yields a more significant increase in the preservation technology level.
represents the initial value of the preservation technology level. Over time, the preservation technology level naturally depreciates due to equipment aging and technological obsolescence, with a decay rate of
.
Similarly, as government policies and consumer preferences evolve, the greenness of fresh products has become a critical factor influencing sales. Therefore, we assume that the dynamic change process of the greenness of fresh products is expressed by the following formulation, with the initial value of the greenness being .
According to Liang et al., we describe the dynamic change process of the green degree of fresh agricultural products as follows [
38]
where
represents the change rate of greenness of fresh products with time,
represents the supplier’s green technology investment effort (GTIE), and
represents the impact elasticity of green technology investment effort on product greenness. A higher value of θ indicates that each additional unit of green technology investment made by the supplier results in a more pronounced improvement in greenness.
represents the initial value of greenness. Similarly, with the passage of time, the green technical standards given by the government are gradually improved, or the green technical equipment is backward, which leads to the gradual slowdown of the greenness growth of products, and its decay rate is represented by
.
We assume that the investment cost of green technology, the investment cost of preservation technology, and the cost of freshness detection of downstream retailers are all quadratic functions of the investment efforts of green technology, preservation technology and freshness detection, respectively [
34,
35], namely
This quadratic cost function is common in economics and supply chain research because it reflects the real-world situation of “the more you invest, the higher the marginal cost,” and it is convenient for mathematical modeling and solving optimal decisions. Where
are the cost coefficients of green technology investment efforts, preservation technology investment efforts and freshness detection efforts, respectively. These cost coefficients (λ) represent the economic efficiency of corresponding investments, where higher values indicate greater marginal costs for achieving the same level of technological improvement or detection accuracy.
We assume that the demand for fresh products has a linear positive correlation with the level of preservation technology, greenness (
https://sww.hangzhou.gov.cn/art/2025/8/18/art_1229451271_58904641.html accessed on 15 December 2024) and freshness detection effort. Referring to the demand function settings of Ma et al. and Zhang et al., Liu et al., and Xia et al., we express the demand function by the following formula [
1,
3,
28,
39].
where
represents the potential market demand of fresh agricultural products,
indicates the market influence of e-commerce platform and streamer, and the influence of head streamer is higher than that of the ordinary streamer, that is
.
5. Comparisons Among Different Models
On the basis of the above model analysis, this section compares the optimal PTIE and GTIE of the fresh agricultural supplier, the FDE of downstream retailers, and the supplier’s profit under three different modes, and it further analyzes the interaction between sales channels and optimal strategies and the optimal strategy selection of the supplier. Proof is shown in
Appendix D.
Proposition 3. Comparison between the optimal PTIE and GTIE of the fresh agricultural product supplier and the FDE of downstream retailers under three sales modes: e-commerce platform, head streamer and ordinary streamer.
(1) The relationship between the PTIE and GTIE (That is ) of fresh agricultural product suppliers under three sales modes is as follows.
If , then is the largest; if , then is the largest; if , then is the largest.
From Equations (5) and (10), we can see that , respectively, represents the marginal profit of the supplier under the SP/SH/SN modes. Proposition 3-(1) indicates that fresh agricultural suppliers’ investments in preservation and greenness depend on the level of marginal profit they achieve under different sales modes. When a channel offers a higher net marginal profit, the supplier has the strongest economic incentive to invest in technology within that channel, and accordingly, the optimal level of investment is also the highest. When marginal profits are higher, it indicates that the marginal benefit curve of technological investment shifts upward. According to the principle of optimal input of production factors, the supplier will correspondingly increase their level of technological investment. Thus, profit margin drives quality upgrading: when a sales mode yields higher profits, the supplier’s incentive and ability to invest in preservation and green technologies increase. Based on this, the supplier should prioritize sales modes that offer sustainable profits and develop long-term technology investment plans accordingly. At the same time, it is recommended that e-commerce platforms and streamers optimize profit-sharing mechanisms to incentivize suppliers’ quality investments, rather than relying solely on price competition or traffic subsidies.
(2) The FDE size relationship of downstream retailers under the three sales modes is as follows.
If
, then
is the largest; if
, then
is the largest; if
, then
is the largest.
As shown in Proposition 3-(2), the freshness detection effort of downstream retailers remains correlated with their marginal profit. As indicated in
Appendix D,
denote the thresholds derived from comparing
with
,
with
and
with
, respectively. That is to say, when the net marginal profit of retailers P/H/N is the highest, the corresponding channel also achieves the maximum level of preservation and detection effort. Therefore, the magnitude of FDE across different sales modes follows the same variation pattern as PTIE and GTIE, that is, it is proportional to the corresponding retailers’ marginal profit. Only when retailers’ marginal profit is sufficiently large do they have the capacity to invest in product freshness detection efforts. This conclusion reminds suppliers that high-quality products require profit assurance throughout the entire supply chain. When selecting sales modes, it is essential not only to focus on sales volume and profit-sharing ratios but also to evaluate whether partners can provide sustainable profit support for the quality assurance system.
Proposition 4. Comparison of greenness and preservation technology level of fresh agricultural products.
(1) The greenness size relationship of fresh agricultural products under the three sales modes is as follows.
If
, then
is the largest; if
, then
is the largest; if
, then
is the largest.
Proposition 4-(1) shows that the threshold for greenness level across different modes aligns with Proposition 3-(1). This is because greenness is primarily influenced by green technology investment, meaning greenness is also positively correlated with suppliers’ marginal profits. When the supplier achieves maximum marginal profits under the SP mode, selling fresh agricultural products through this channel enhances product greenness. Similarly, when suppliers’ marginal profits are maximized under the SH/SP mode, collaborating with the head/ordinary streamer can further enhance greenness. The supplier must select sales modes that ensure reasonable profit margins to achieve the green upgrade of fresh agricultural products.
(2) The preservation technology level size relationship of fresh agricultural products under the three sales modes is
When , , otherwise, .
When , , otherwise, .
When , , otherwise, .
From Proposition 4-(2), it can be seen that the preservation technology level is not only related to the marginal profit but also related to the degree of freshness detection effort. When
and
are greater than a certain threshold or
is less than a certain threshold, choosing an e-commerce platform for sale can improve the preservation technology level. When
and
are greater than a certain threshold or
is less than a certain threshold, cooperation with the head streamer can improve the preservation technology level; otherwise, the supplier should choose ordinary streamer mode. In other words, if the supplier’s marginal profit under the P/H/N sales modes is sufficiently high, or if the retailer’s preservation and detection effort is strong in these modes, the highest preservation technology level will be achieved in that corresponding mode. Conversely, if the retailer’s preservation effort in another sales mode is too low, it helps to identify which mode delivers the best preservation performance. This result also shows the importance of the level of fresh-keeping inspection. For example, CCTV’s “3·15” exposure of Oriental selection and the use of trough-head meat for braised plum vegetables sold in the live streaming room of three sheep exposed the problems of product selection and the inspection process in the live streaming industry. If the inspection investment is insufficient, the quality of fresh agricultural products will be difficult to guarantee (
https://t.cj.sina.com.cn/articles/view/1988645095/768850e7020017iqx accessed on 15 December 2024).
6. Numerical Experiments
This section constructs an e-commerce livestreaming supply chain model involving a fresh agricultural product supplier and downstream retailers. The supplier faces a strategic choice between direct sales via an e-commerce platform or livestreaming sales. They may collaborate with a head or an ordinary streamer based on actual conditions. The numerical simulation study proceeds as follows:
(1) Real-world data collection. Based on industry research data, commission rates for fresh agricultural streamers cluster around three tiers: 10%, 15%, and 20% (
https://baijiahao.baidu.com/s?id=1797572678270534247&wfr=spider&for=pc accessed on 15 December 2024). Head streamer slot fees can reach RMB 150,000 (
https://pinkehao.com/infor/14214.html accessed on 15 December 2024), while ordinary streamers charge between RMB 50,000 and 100,000 (
https://hangzhou.11467.com/info/10284825.htm accessed on 15 December 2024). Therefore, we assume a commission rate of
for the head streamer and
for an ordinary streamer. Research also indicates that head streamers possess significantly greater market influence than ordinary streamers. Following the measurement methodology [
1], this study sets the influence coefficient for the head streamer as
and for an ordinary streamer as
. For comparative purposes, the e-commerce platform’s influence coefficient is set as an intermediate value between head and ordinary streamer, i.e.,
.
(2) Data Standardization. Due to issues such as inconsistent units and complex influencing factors in the raw data, all parameters require standardized conversion. After eliminating interference factors and performing unit conversions, the standardized data were substituted into the theoretical model for calculation. MATLAB R2022a software was employed for numerical simulation and visualization.
(3) Preliminary Results Analysis. Initial simulations showed that large disparities in parameter values (e.g., high pit fees relative to other parameters) obscured variation trends in key variables, hindering the visualization of core findings.
(4) Parameter Optimization Adjustments. To enhance simulation effectiveness, the parameter system was recalibrated while maintaining the original theoretical framework, referencing value standards from multiple literature sources [
1,
28,
29,
30]:
. The optimized simulation results are as follows.
Figure 5 and
Figure 6 illustrate that both freshness preservation technology level (
) and product greenness (
) tend to stabilize over time.
Figure 5 indicates that freshness preservation technology is highest when collaborating with an e-commerce platform, followed by a head live streamer, and lowest with an ordinary streamer. This stems from the pressure exerted by the platform’s stringent inspection standards and the relatively stronger inspection capabilities of the head streamer.
Figure 6 reveals that product greenness is maximized when partnering with a head streamer, followed by an e-commerce platform, and lowest with ordinary streamers. Combined with
Figure 5, this suggests that under the e-commerce platform mode, suppliers may reduce investments in green technologies to maintain high standards of freshness preservation. From the supplier’s perspective, collaboration with high-standard e-commerce platforms or head streamers is advisable, provided they can effectively balance investments in freshness preservation and green technologies to avoid resource misallocation. When partnering with an ordinary streamer, the supplier should strengthen guidance and enhance their supply chain influence.
Figure 7 illustrates the influence of marginal revenue of downstream retailers
(unified as
for convenience of representation in the figure) and time in the supply chain on suppliers’ revenue.
Figure 7a shows that as time passes, when
becomes larger, the supplier’s profit from choosing an e-commerce platform becomes lower. This is because under the e-commerce platform mode, the platform and supplier make profits separately, and
only represents the platform’s marginal profit. In reality, the e-commerce platform often reduces the supplier’s profit to obtain higher profits for itself. For example, fresh food group-buy platforms like Duoduo Grocery and Meituan Preferred keep lowering prices for suppliers to save costs (
https://baijiahao.baidu.com/s?id=1742515595406018054&wfr=spider&for=pc accessed on 16 December 2024). Under the live streaming collaboration model,
is the total marginal revenue of the live streaming channel and is shared between both parties. The higher
is, the greater the supplier’s revenue, indicating a positive correlation between the two.
Figure 7b further illustrates the revenue indifference curve (
) for the supplier choosing between the e-commerce platform and head streamer: when the marginal profit is relatively high, partnering with head streamer is more advantageous; when the marginal profit is relatively low, selecting the e-commerce platform is a more suitable choice. This finding substantiates Proposition 4, which posits that suppliers must determine their sales mode based on their marginal profit. Take the popular agricultural product “Yanshu 25” as an example. From being little known to being sold on Pinduoduo (A well-known e-commerce platform in China), its daily orders jumped to 4000–5000 and quickly expanded to many provinces across the country (
https://mp.weixin.qq.com/s?__biz=MjM5NDY5MzE4MA==&mid=2652784463&idx=3&sn=5f22cfe8687383d5640a027054bd38a6&chksm=bd690e1c8a1e870ac8fbaea3736d15eff61f8d938c4593311bc5b391f0d12499a6bf9409330c&scene=27 accessed on 16 December 2024). This shows that the e-commerce platform model can effectively increase sales and help supplier makes profits.
Figure 8 demonstrates how supplier profits change when
, namely the head streamer’s commission rate rises to 25% and pit fee increases to 1.5, while the ordinary streamer’s fees stay constant. The figure also presents the profit equal lines for
and
. The results indicate that for high marginal profits, the supplier should initially select an ordinary streamer and later transition to a head streamer. This pattern connects to two key factors: the supplier’s preservation technology level
and greenness
. Early in the process, when both
and
remain below the head streamer’s detection requirement, working with an ordinary streamer who has a lower standard proves more beneficial. As
and
improve and stabilize over time, eventually meeting the head streamer’s criteria, switching to head streamer mode becomes the better choice.
Figure 9 shows the change in the supplier’s income when
, namely, head streamer fees remain high while ordinary streamer fees decrease, and the profit of
is given in
Figure 9b. When the head streamer’s commission rate and pit fee substantially exceed those of an ordinary streamer, a supplier with high marginal profits should opt for an ordinary streamer. In summary, suppliers must conduct a comprehensive evaluation of streamer fees and revenue-sharing structures to prevent high commissions from eroding their profits.
Figure 10a shows that the profit of the e-commerce platform, head streamer, and ordinary streamer decreases over time due to the perishability of fresh products, but increases as their marginal profit
rises. As downstream retailers in the supply chain, their profits grow with their respective marginal revenues. Among them, the e-commerce platform shows the most significant profit growth.
Figure 10b indicates that overall supply chain profit is positively correlated with marginal profit but negatively correlated with time. When the supplier opts to cooperate with the e-commerce platform, the system-wide profit shows an upward trend, as the platform’s significant profit increase offsets the decline observed in
Figure 7a. These results suggest that suppliers should prioritize the e-commerce platform for selling fresh agricultural products when aiming to maximize overall supply chain benefits.
Figure 11a illustrates the dynamic impact of streamer influence on the supplier’s channel selection over time. For comparison, we standardize the streamer’s influence
as
. As the streamer’s influence
increases, the supplier’s profit rises accordingly because greater influence enhances fan effects, attracts more traffic, boosts sales, and ultimately increases the supplier’s earnings.
Figure 11b shows that the supplier’s optimal choice varies with different influence levels. The supplier benefits most from collaborating with a head streamer only when the influence is high. At medium influence levels, partnering with an ordinary streamer proves better. When the influence is low, the supplier achieves higher profits by opting for e-commerce platform sales. For example, early pioneers in online fresh food, such as Dingdong Maicai and JD Maicai, attracted suppliers by developing front-warehouse models (
https://baijiahao.baidu.com/s?id=1760893110791962433&wfr=spider&for=pc accessed on 16 December 2024). With the rise of live-streaming e-commerce, many fresh food platforms began inviting influencers to promote sales. For example, JD invited celebrity Wang Xiaoli to livestream sell hairy crabs, generating 7.13 million RMB in GMV (
https://cj.sina.com.cn/articles/view/6494755109/1831e192500101ecua accessed on 16 December 2024). In conclusion, when the streamer’s influence is strong enough to attract consumers, the supplier should choose streamer collaboration. When the influence remains insufficient to drive traffic, the supplier should opt for e-commerce platform sales.
Figure 12 examines how consumer preferences for the preservation technology level
and greenness
affect demand, supplier profits, and downstream retailers’ profits. To make comparisons clearer, we use t = 0.3 as an example for analysis.
Figure 12a shows that market demand D increases with both
and
across all three channels, but grows more significantly with
than
, indicating consumers value preservation technology more.
Figure 12b reveals that supplier profits under all three channels first decrease, then increase with rising
, with this pattern being most pronounced for
. This phenomenon occurs because initial investments in preservation technology may not be immediately recouped; profits subsequently rise as market preference for fresher products intensifies. Additionally, supplier profits under all channels increase slightly with
, suggesting that improving greenness has a limited impact on boosting profits.
Figure 12c demonstrates that downstream retailers’ profits increase with both
and
. The growth is strongest for
relative to
, while increases of
and
are smaller. All three profits show insignificant growth trends with
. Based on these findings, we advocate for the following strategic implications: suppliers should prioritize freshness preservation technology as their core investment focus while adopting a measured development strategy for green technologies. Retailers should emphasize promoting high-preservation products and establish incentive systems tied to freshness level. Collectively, all supply chain participants must recognize that advancements in freshness preservation technology yield greater tangible returns compared to solely pursuing greenness.
Figure 13 shows the influence of preservation technology level preference
and the influence coefficient of FDE on demand
on FDE. It can be seen that
can improve FDE more than
, and the FDE of e-commerce platform is the most obvious with the growth of
. Therefore, the e-commerce platform should focus on demonstrating the returns generated by enhanced testing technologies to all parties in the supply chain. This will enable the supplier to clearly recognize the value of detection, thereby incentivizing them to increase their commitment to freshness preservation technology.
Based on the findings in
Figure 14, green technology investment costs (
) exert the most significant impact on supplier profits, with cost increases leading to a sharp decline in returns. In contrast, the effect of freshness preservation technology investment costs (
) on supplier profits is relatively limited, and as shown in
Figure 11a, consumers place greater emphasis on freshness preservation technology. Therefore, a supplier cannot arbitrarily reduce the costs associated with freshness testing, a factor that significantly influences preservation technology levels. This conclusion is further substantiated by Proposition A1-(2).
As shown in
Figure 15, for downstream retailers, increased freshness detection costs markedly reduce their profits, a phenomenon particularly pronounced under the e-commerce platform mode.
Figure 16 illustrates that the preservation technology level exhibits a positive relationship with the streamer’s commission rate over time, showing an accelerating growth trend. This pattern indicates that increasing the streamer’s commission rate provides a positive incentive for the supplier to improve preservation technology. Since the streamer is responsible for preservation quality checks, a higher commission encourages greater investment in preservation testing, which in turn motivates the supplier to enhance their preservation technology. The head streamer mode leads to a significant increase in the preservation technology level compared to the ordinary streamer mode, suggesting that the head streamer is more effective in driving preservation technology advancements. This difference can be attributed to the stronger bargaining power held by head streamers, which enables them to exert greater pressure on supplier to meet higher preservation standard.
Figure 17 illustrates that over time, a lower commission rate leads to an effective increase in the greenness level, whereas a higher commission rate results in a decline. As indicated
Figure 15, this occurs because high streamer commissions compress the supplier’s profit margin. To maintain high preservation technology standard under such conditions, the supplier may reduce investment in green technology, thereby lowering the greenness level. In the head streamer mode, the decline in greenness occurs more gradually. This can be attributed to the head streamer’s strong influence and higher sales volume, which generate economies of scale. These economies enable the supplier to allocate relatively more resources to green technology compared to other cost items. As a result, the adverse effect of a high commission rate on greenness investment is mitigated, helping to moderate the decline in greenness.
As shown in
Figure 18, the commission rate significantly influences suppliers’ choice of live streamers. At a lower commission rate, the ordinary streamer yields higher profits for the supplier, but this advantage diminishes rapidly as the rate increases. Conversely, supplier profits under the head streamer mode steadily increase with rising commission rate. This phenomenon stems from the differing potential of the two streamer types. For ordinary streamers with limited capabilities, a higher commission rate struggles to incentivize increased sales, ultimately harming supplier profits. For head streamer, however, a high commission rate effectively mobilizes their superior marketing prowess. By substantially boosting sales volume, they offset suppliers’ commission expenses, ultimately driving supplier profit growth. Therefore, when the commission rate is high, priority should be given to collaborating with the head streamer, leveraging their strong sales conversion capabilities to safeguard supplier profits.
7. Model Expansion
Considering that in reality, fresh products are often sold together in e-commerce platforms and live streaming rooms, this paper extends the original model to help fresh agricultural suppliers make a choice between single-channel or dual-channel sales.
We formulate two distinct dual-channel configurations: simultaneous distribution via the e-commerce platform and a head streamer (P+H), and via the e-commerce platform and an ordinary streamer (P+N). In reality, the cost of a fresh supplier cooperating with both the head streamer and the ordinary streamer is too high, and there are few cases, so this paper will not consider it.
As mentioned above, the assumptions of preservation technology level and greenness remain unchanged. However, the demand functions are adapted to characterize the P+H and P+N scenarios. Referring to previous literature [
41,
42], we set the demand function here as
Among them, we divide the potential market demand of the P+H channel into two parts by influence. The potential market demand ratio of the e-commerce platform is , and the potential market demand ratio of the head streamer is .
Because it is difficult to discuss the profit of the downstream sellers in the dual channel, and this paper analyzes it from the perspective of the supplier, we only discuss the change in the supplier’s profit here, and the supplier’s profit can be obtained from Equations (20) and (21) as follows.
After calculation, the profit of the supplier in the P+H channel is
Coefficient terms (such as
, etc.). See the
Appendix C.
Similarly, the demand functions of the P+N channel are
Similarly, we divide the potential market demand of the P+N channel into two parts by influence. The potential market demand ratio of the e-commerce platform is , and the potential market demand ratio of the ordinary streamer is .
Then, the profit of suppliers in the P+N channel is
After the calculation, the profit of the supplier in the P+N channel is
Coefficient terms (such as
, etc.). See the
Appendix C.
Consistent with the above, because the optimal solutions of suppliers’ profits cannot be compared by mathematical operations, we use numerical analysis to compare them. However, unlike the previous paper, in order to make the distribution ratio of potential demand greater than 0, we no longer use
as the benchmark value here, but let
, and other parameters are consistent with
Section 6.
As illustrated in
Figure 19, the supplier’s channel selection depends on the size of the marginal profit; the marginal profit exists in different ranges, and the profit size of the supplier is also different, which can be clearly seen from the head view on the left. When the marginal profit is in the middle and high, suppliers can make more profits by choosing the dual channel of e-commerce platform and head streamer, while suppliers should choose the head streamer and e-commerce platform, respectively, when the marginal profit is extremely large and small. This pattern stems from the inherent logic that marginal profit determines supplier profitability: moderate marginal profit provides the supplier with the residual capacity to engage in dual-mode sales; under lower marginal profit, opting for cooperation with a relatively low-cost e-commerce platform is more conducive to profitability; extremely high marginal profit enables the supplier to bear the high costs associated with the head streamer and achieve higher returns.
Similarly, as illustrated in
Figure 20, the supplier’s channel selection is contingent upon varying levels of marginal profit. As can be seen from the head view on the left, the marginal profit is also in the middle, and the supplier has the spare capacity to choose the dual-channel mode of e-commerce platform and ordinary streamer; however, compared with
Figure 12, this interval is smaller because the commission of the ordinary streamer is lower and the cost of the supplier is lower, so the marginal profit threshold of supplier’s choice of ordinary streamer is smaller than that of head streamer. However, compared with
Figure 12, the marginal profit condition of choosing the P+N channel is lower than that of the single e-commerce platform channel, which shows that the P+N channel is the easier selection for the supplier than the P+H channel.
8. Conclusions and Management Insights
The rise of live streaming e-commerce provides fresh agricultural suppliers with new sales channel options. How to select the appropriate sales channel to maximize profits has become an urgent problem for suppliers to solve. This paper constructs a fresh agricultural supply chain consisting of a supplier and downstream retailers. We consider three decision variables: the supplier’s preservation technology investment effort, green technology investment effort, and downstream retailers’ freshness detection effort. The study establishes state equations for preservation technology level and greenness, examining the profits of supply chain members under three sales modes: e-commerce platform sales, head streamer sales, and ordinary streamer sales. Using differential game theory methods, we build a Stackelberg game model between the supplier and downstream retailers with dynamic equilibrium conditions. The research systematically evaluates the trade-offs of the three sales modes under varying conditions, providing reasonable recommendations to help fresh agricultural suppliers choose the most suitable sales mode. The study draws the following conclusions.
(1) Investment levels and marginal profits: The preservation technology investment effort (PTIE), green technology investment effort (GTIE), and freshness detection effort (FDE) depend on the marginal profit of each decision-maker. This indicates that the profit-sharing mechanism serves as a core lever for incentivizing technological upgrading in the supply chain. If downstream retailers can ensure the supplier’s marginal profit space through well-designed allocation schemes, it will directly promote long-term investment in preservation and green technologies.
(2) Preservation technology level and greenness: Greenness is mainly determined by marginal profit. Channels with higher marginal profits achieve higher greenness. Preservation technology level is jointly influenced by marginal profit and freshness detection costs. When the e-commerce platform’s freshness detection cost exceeds a certain threshold, or when the streamer’s freshness detection cost falls below a certain threshold, choosing the e-commerce platform better improves preservation technology. This provides a theoretical basis for suppliers to select appropriate channels according to different quality objectives. This study not only identifies the optimal sales mode for maximizing preservation technology but also determines the best choice for maximizing product greenness, filling a gap in existing literature.
(3) Supplier profits: During the low-profit stage, the e-commerce platform is more conducive to securing supplier revenue due to its stable channel characteristics. As profit margins increase, streamer-based models become a potentially advantageous option, but a rigorous evaluation of the alignment between streamer influence and cost structure is essential. If the commission and slotting fees of a head streamer significantly exceed the traffic premium they bring, then an ordinary streamer or platform-based model may instead offer greater sustainable profitability.
(4) Channel influence: Supplier must consider both the streamer’s influence and cost-effectiveness. When the head streamer’s influence reaches the leading level in the industry, collaboration may create significant scale effects. However, if influence is insufficient to offset costs, ordinary streamers may be superior, and with low influence, the traditional e-commerce platform’s advantages should be prioritized for profit maximization. Therefore, suppliers should establish an influence cost-balanced evaluation framework to avoid compromising profit resilience in pursuit of traffic.
(5) Consumer preferences: The study confirms that consumer preference for preservation technology significantly outweighs their focus on green attributes, which may lead suppliers to systematically prioritize “preservation over greenness” in investment decisions. This finding suggests that advancing green transformation requires market education or external incentives.
(6) Commission impact: High commission rates, while incentivizing streamers to enhance quality control and promote preservation technology, may crowd out resources for green technology investment. Comparisons reveal that the head streamer model exerts a relatively weaker inhibitory effect on green investment, indicating its superior comprehensive coordination capability.
(7) Dual-Channel Considerations: Incorporating a dual-channel mode of e-commerce platform and live streaming, the optimal choice for the supplier also needs to be decided according to the marginal profit of downstream sellers. Generally speaking, compared with cooperation with a single streamer (head streamer or ordinary streamer), the marginal profit condition of choosing the P+H channel is higher than that of choosing the P+N channel. This finding provides differentiated channel entry pathways for suppliers of varying scales: suppliers with weaker profit foundations may prioritize the “platform + ordinary streamer” model to achieve a more stable sales structure, while suppliers with sufficient profit margins can directly adopt the “platform + head streamer” combination to secure traffic support.
Based on the findings of this study, integrated management insights are proposed for all relevant stakeholders. Suppliers should adopt refined channel management strategies, initially building a sales foundation through e-commerce platforms and then introducing live streaming channels as marginal profits increase, while carefully balancing streamer influence with associated costs. Given the observed stronger consumer preference for freshness over environmental sustainability, suppliers should prioritize product freshness while steadily advancing green transformation, flexibly combining “platform + head streamer” models for high-value-added products and “platform + ordinary streamer” models for mass-market goods. Streamers should strengthen quality-control collaboration with suppliers, establish transparent and traceable product information disclosure mechanisms, and optimize commission structures to encourage sustainable supply chain investments. E-commerce platforms should provide data-driven tools to monitor freshness and green performance, design incentives that reward high-quality and sustainable practices, and introduce credible certification labels to support informed consumer choice. Consumers can promote market shifts toward greater sustainability by prioritizing products with verified freshness and credible green credentials in their purchasing decisions. Industry and policymakers should implement targeted green subsidies and tax incentives, establish tiered quality-control standards linking freshness inspection, streamer credit ratings, and platform oversight to create a market-driven virtuous cycle, and foster third-party verification systems to enhance the credibility of quality and environmental claims in live streaming commerce. Such coordinated efforts can steer the fresh agricultural live streaming supply chain toward greater transparency, efficiency, and sustainability.
Our study acknowledges several key limitations that provide avenues for future research. First, the reliance on a linear and additive demand function, while analytically tractable, may oversimplify the potential complementary or substitutive interactions between preservation efforts and product greenness observed in real markets. Future work could introduce nonlinear demand specifications or explicit interaction terms to examine how such dynamics influence channel choice and strategy, thereby enriching the theoretical foundation of live streaming e-commerce. Second, the model assumes fixed decay rates, constant costs, and stable influence coefficients, which may not reflect real-world variability in consumer preferences or streamer performance. Extending the framework to incorporate stochastic or time-varying parameters would enhance its realism and robustness. Moreover, a key limitation is that our model does not systematically compare hybrid channel strategies. Future work could extend the framework to examine synergies or competition between combined sales modes. Lastly, as a theoretical modeling study, our conclusions lack empirical validation. While the model offers meaningful analytical insights, its practical relevance would be strengthened by future empirical or case-based verification. Additionally, the results may lack generalizability, as the model is built specifically on the Chinese live streaming e-commerce context. Future research could empirically validate the model, adopt alternative demand specifications, or extend it to settings with multiple suppliers or competing platforms. Such efforts would enhance both the generalizability and practical relevance of the findings.