How does blockchain mitigate false advertising in live streaming E-commerce? A tripartite stochastic evolutionary game approach

Abstract

The rapid rise of live-streaming e-commerce, particularly in China, has transformed consumer shopping experiences; however, it has also introduced challenges such as false advertising and distorted product information. This study explores how blockchain technology can address these issues within the live-streaming e-commerce ecosystem. Using a tripartite evolutionary game model involving e-commerce platforms, merchants, and consumers, we apply stochastic differential equations to analyze the stability of strategic behaviors and dynamics of false advertising. Key findings include: (1) In high-commission environments, platforms and merchants are better aligned, increasing the likelihood of merchants adopting truthful advertising strategies. (2) In high-profit environments, the temptation for merchants to engage in false advertising rises, prompting platforms to adopt blockchain technology to maintain transparency. (3) Although blockchain technology adoption enhances platform reputation over the long term, its direct impact on merchants’ advertising strategies is limited. (4) Regulatory measures such as fines and consumer reporting rewards promote blockchain technology adoption and reduce false advertising. These findings provide valuable insights for enhancing the credibility of live-streaming e-commerce and offer guidance for platforms on balancing technology adoption with regulatory efforts to foster sustainable industry development.