The Economics of Crowdfunding Platforms

61 Pages Posted: 28 Mar 2015

See all articles by Paul Belleflamme

Paul Belleflamme

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

Nessrine Omrani

Paris School of Business; PSB Paris School of Business

Martin Peitz

University of Mannheim - Department of Economics

Date Written: March 20, 2015

Abstract

This paper provides a description of the crowdfunding sector, considering investment- based crowdfunding platforms as well as platforms in which funders do not obtain monetary payments. It lays out key features of this quickly developing sector and explores the economic forces at play that can explain the design of these platforms. In particular, it elaborates on cross-group and within-group external effects and asymmetric information on crowdfunding platforms.

Keywords: Crowdfunding, Platform markets, Network effects, Asymmetric information, P2P lending

JEL Classification: L13, D62, G24

Suggested Citation

Belleflamme, Paul and Omrani, Nessrine and Peitz, Martin, The Economics of Crowdfunding Platforms (March 20, 2015). Available at SSRN: https://ssrn.com/abstract=2585611 or http://dx.doi.org/10.2139/ssrn.2585611

Paul Belleflamme (Contact Author)

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

Nessrine Omrani

Paris School of Business ( email )

59 rue Nationale
Paris, 75013
France

HOME PAGE: http://https://www.faculty-psbedu.paris/fr/professeurs/nessrine-omrani

PSB Paris School of Business ( email )

59 rue Nationale
Paris, 75013
France

HOME PAGE: http://https://www.faculty-psbedu.paris/fr/professeurs/nessrine-omrani

Martin Peitz

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181-1835 (Phone)

HOME PAGE: http://peitz.vwl.uni-mannheim.de/

Register to save articles to
your library

Register

Paper statistics

Downloads
1,672
Abstract Views
4,642
rank
9,560
PlumX Metrics