Are Promises Meaningless in an Uncertain Crowdfunding Environment?

10 Pages Posted: 10 May 2016

See all articles by Janice Alane Hauge

Janice Alane Hauge

University of North Texas

Stanley Chimahusky

affiliation not provided to SSRN

Date Written: July 2016

Abstract

We use a prominent crowdfunding organization, Kickstarter, to analyze the factors that determine timeliness of delivery of rewards to financial backers. We seek to determine the extent to which promised rewards are delivered on time and to characterize projects that have stronger likelihood of timely delivery of rewards. We find that lateness commonly occurs, yet cannot be explained universally with any given set of project characteristics, implying that the uncertainty of rewards involved with crowdfunding entities is difficult to overcome.

JEL Classification: D71, D83, L82

Suggested Citation

Hauge, Janice Alane and Chimahusky, Stanley, Are Promises Meaningless in an Uncertain Crowdfunding Environment? (July 2016). Economic Inquiry, Vol. 54, Issue 3, pp. 1621-1630, 2016. Available at SSRN: https://ssrn.com/abstract=2777780 or http://dx.doi.org/10.1111/ecin.12319

Janice Alane Hauge (Contact Author)

University of North Texas ( email )

1155 Union Circle #305340
Denton, TX 76203
United States
940-565-4544 (Phone)

Stanley Chimahusky

affiliation not provided to SSRN

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