An Empirical Analysis of a Crowdfunding Platform
Author(s) -
JinHyuk Kim,
Peter Newberry,
Calvin Qiu
Publication year - 2015
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.2672075
Subject(s) - counterfactual thinking , observability , nothing , government (linguistics) , conditionality , quality (philosophy) , business , public economics , empirical research , economics , advertising , marketing , monetary economics , political science , psychology , social psychology , philosophy , linguistics , mathematics , epistemology , politics , law
Crowdfunding, a fundraising mechanism in which monetary contributions are raised from a large number of people, is booming and impacting government policy. We study two features of a well-known crowdfunding platform, Kickstarter.com. First, we study the role of observable information in determining whether or not a donor contributes to the project. Second, we study the effect of the all-or-nothing nature of donations. Our counterfactual analyses indicate that the observability of donor information increases the expected quality of funded projects while the conditionality of pledges decreases it.
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