An Empirical Analysis of a Crowdfunding Platform

27 Pages Posted: 22 Oct 2015

See all articles by Jin-Hyuk Kim

Jin-Hyuk Kim

University of Colorado at Boulder

Peter Newberry

Pennsylvania State University

Calvin Qiu

ICF GHK

Date Written: September 30, 2015

Abstract

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. 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.

Keywords: Crowdfunding, Social learning, Value of information, Free-riding, Voluntary contribution

JEL Classification: D82, D83, G11, G14, L26, L81

Suggested Citation

Kim, Jin-Hyuk and Newberry, Peter and Qiu, Calvin, An Empirical Analysis of a Crowdfunding Platform (September 30, 2015). NET Institute Working Paper No. 15-12, Available at SSRN: https://ssrn.com/abstract=2672075 or http://dx.doi.org/10.2139/ssrn.2672075

Jin-Hyuk Kim (Contact Author)

University of Colorado at Boulder ( email )

Campus Box 256
Boulder, CO 80309
United States

Peter Newberry

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Calvin Qiu

ICF GHK ( email )

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
582
Abstract Views
2,293
rank
51,130
PlumX Metrics