Managing Third-Party Platform Litigation Risk in Crowdfunding: Terms, Pricing, and Reputation
26 Pages Posted: 20 Jul 2016 Last revised: 14 Sep 2016
Date Written: July 18, 2016
Untangling these factors and assessing their interaction will involve multiple studies over an extended period of time. This paper begins that process by identifying platform litigation risks (using U.S. law as a key reference point) and specific nonfinancial terms of platform hosting arrangements relating to litigation risk. Preliminary, anecdotal observations are made about the effects of litigation risk on the pricing of platform services and platform reputation. In later work, it is anticipated that empirical observations also could be made about certain elements of the relative cost of platform services and platform reputation.
JEL Classification: G30, K12, K22, L14
Suggested Citation: Suggested Citation