15 Pages Posted: 16 May 2014 Last revised: 30 Aug 2014
Date Written: August 30, 2014
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: 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