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Crowdfunding: Some Empirical Findings and Microeconomic Underpinnings

15 Pages Posted: 16 May 2014 Last revised: 30 Aug 2014

Paul Belleflamme

GREQAM; CORE and Louvain School of Management, UCL (Université Catholique de Louvain); CESifo (Center for Economic Studies and Ifo Institute)

Thomas Lambert

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM)

Date Written: August 30, 2014

Abstract

This article reviews some recent developments in the study of crowdfunding -- i.e., the practice of raising funds through an open call on the Internet. It also shows how microeconomic theory can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors. Throughout the article, the Belgian market for crowdfunding serves as the main source of illustrations.

Keywords: crowdfunding, multisided platforms, information asymmetry, price discrimination

JEL Classification: G32, L11, L13, L15, L21, L26

Suggested Citation

Belleflamme, Paul and Lambert, Thomas, Crowdfunding: Some Empirical Findings and Microeconomic Underpinnings (August 30, 2014). Available at SSRN: https://ssrn.com/abstract=2437786 or http://dx.doi.org/10.2139/ssrn.2437786

Paul Belleflamme

GREQAM ( email )

Centre de la Vieille Charité
2, rue de la Charité
Marseille, 13002
France

HOME PAGE: http://www.paulbelleflamme.com

CORE and Louvain School of Management, UCL (Université Catholique de Louvain) ( email )

34 Voie du Roman Pays
POBox L1.03.01
B-1348 Louvain-la-Neuve, B-1348
Belgium
+32 10 47 82 91 (Phone)
+32 10 47 43 01 (Fax)

HOME PAGE: http://perso.uclouvain.be/paul.belleflamme/Site/Home.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Thomas Lambert (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://www.sites.google.com/site/lambertthom

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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