Optimal Pricing and Quality Decisions in Supply Chains With Consumers’ Anticipated Regret and Online Celebrity Retailers

Shuai Liu, Guowei Hua, T. C.E. Cheng, Jason Choi

Research output: Journal article publicationJournal articleAcademic researchpeer-review

11 Citations (Scopus)


Shopping on a live-streaming e-commerce platform has become a popular way of consumption. In this article, we build models to study the decision-making of online celebrity retailers (OCRs), taking into consideration consumers’ anticipated regret behaviors. We explore the OCRs optimal pricing and quality decisions under the basic models and further examine the OCRs sales efforts in the extended model. We investigate the impact of consumers’ anticipated regret behaviors on the OCRs profit. After that, we examine when the supply chain with the OCR can achieve the win–win outcome. To assess the robustness of the results, we conduct extensive numerical studies of the basic and extended models. We derive a counterintuitive result that negative consumers’ anticipated regret does not necessarily hurt the OCRs profit and consumer surplus. In addition, a low consumers’ search cost may instead lead to higher profit for the OCR. If the channel construction cost of the live-streaming platform is low, the OCRs product quality and price will decline. The OCRs costs of handling returns and maintaining sales channels can help the supply chain achieve the win–win outcome for both the OCR and consumers.

Original languageEnglish
JournalIEEE Transactions on Engineering Management
Publication statusAccepted/In press - 2022


  • Anticipated regret
  • Business
  • Costs
  • Decision making
  • Electronic commerce
  • live-streaming e-commerce platform
  • online celebrities
  • Optical character recognition software
  • price and quality decisions
  • Pricing
  • supply chain management
  • Supply chains

ASJC Scopus subject areas

  • Strategy and Management
  • Electrical and Electronic Engineering


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