Scott Pitman, Callum Fordyce and a late brace from Jordan White separated the two teams who are both at the foot of the Championship table.
The opening goal arrived on 21 minutes when Myles Hippolyte kept the ball in play just inside the Alloa half and outpaced Michael Doyle before sliding the ball across the box to Pitman to blast into the net from 10 yards.
Hippolyte could have doubled the lead as he latched on to a through pass and lobbed the ball over the advancing Craig McDowall and wide of the target.
Livingston did strike again when Jason Talbot’s corner spun off the leg of Kyle Benedictus and as the ball broke to Fordyce (61) he smashed his shot home from close range.
Alloa were almost back in the match within 90 seconds as Kevin Cawley controlled a pass from Ryan McCourt on his chest and despatched a shot towards the far corner only to be denied by Darren Jamieson, who tipped the ball round the post.
From the resulting corner Mark Docherty’s delivery evaded everyone in the six-yard box and came back out from the inside of the far post.
Wasps substitute Isaac Layne then came close as he held off a challenge from Livingston defender Fordyce and turned to hit a dipping shot from 25 yards which dropped on to the top of the bar.
Livingston were also denied by the woodwork two minutes later after Hippolyte got to the goal-line and cut the ball back to Keaghan Jacobs, who shot through a defender’s legs and off the post.
And Livvy sealed the victory four minutes from time when White slipped a pass through for Gary Glen, and raced into the box to take the return and clip the ball past McDowall.
There was still time for White to complete his brace as he got up in front of McDowall to meet a Talbot cross and flick his header over the Alloa ‘keeper.