An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets

  title={An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets},
  author={Gordon Burtch and Anindya Ghose and Sunil Wattal},
  journal={Inf. Syst. Res.},
Crowd-funded markets have recently emerged as a novel source of capital for entrepreneurs. As the economic potential of these markets is now being realized, they are beginning to go mainstream, a trend reflected by the explicit attention crowdfunding has received in the American Jobs Act as a potential avenue for economic growth, as well as the recent focus that regulators such as the U.S. Securities and Exchange Commission have placed upon it. Although the formulation of regulation and policy… 
Crowdfunding: A Review and Research Agenda
Crowdfunding is an alternative model for project financing, where a large and dispersed audience participates through relatively small financial contributions, in exchange for physical, financial or
Playing Both Sides of the Market: Success and Reciprocity on Crowdfunding Platforms
It is found that an entrepreneur’s backing-history has a significant effect on financing outcomes; campaigns initiated by entrepreneurs who have previously supported others have higher success rates, attract more backers and collect more funds.
Crowdfunding and social influence: an empirical investigation
ABSTRACT The literature so far provides no in-depth investigation of the determinants of decisions to contribute to crowdfunding platforms. The present article draws on work measuring the decisions
Network Externalities in Collaborative Consumption: Theory, Experiment, and Empirical Investigation of Crowdfunding
Crowdfunding is an internet fundraising mechanism for soliciting capital from the crowd to support entrepreneurial ventures. Entrepreneurs set a funding target and deadline. Investors independently
Some Simple Economics of Crowdfunding
It is not surprising that the financing of early-stage creative projects and ventures is typically geographically localized since these types of funding decisions are usually predicated on personal
Predicting the success of entrepreneurial campaigns in crowdfunding: a spatio-temporal approach
As an alternative to traditional venture capital investment, crowdfunding has emerged as a novel method and potentially disruptive innovation for financing a variety of new entrepreneurial ventures
The Signal Value of Crowdfunded Products
Crowdfunding has emerged as an alternative means of financing new ventures by utilizing the financial support of a large group of individual investors. This research asks a novel question: Does being
The 'Experts' in the Crowd: The Role of Experienced Investors in a Crowdfunding Market
The findings indicate that the participation by individuals with expertise can be beneficial to crowdfunding markets, and it is found that apps with “expert” investors are positively associated with ex-post app sales.


Herding Behavior as a Network Externality
A negative association between herding and the optimality of investor decision-making is identified, supporting the characterization of herding as a negative network externality.
Entrepreneurial Finance and the Flat-World Hypothesis: Evidence from Crowd-Funding Entrepreneurs in the Arts
We examine the geography of early stage entrepreneurial finance in the context of an internet marketplace for funding new musical artist-entrepreneurs. A large body of research documents that
Crowdfunding of Small Entrepreneurial Ventures
An inherent problem that entrepreneurs face at the very beginning of their entrepreneurial initiative is to attract outside capital, given the lack of collateral and sufficient cash flows and the
A Field Experiment in Charitable Contribution: The Impact of Social Information on the Voluntary Provision of Public Goods
We study the effect of social information on the voluntary provision of public goods. Competing theories predict that others' contributions might be either substitutes or complements to one's own. We
Judging Borrowers by the Company They Keep : Social Networks and Adverse Selection in Online Peer-to-Peer Lending
We study the online market for peer to peer (P2P) lending in which individuals bid on unsecured microloans sought by other individual borrowers. Using a large sample of consummated and failed
This article analyzes the impact of crowdfunding on journalism. Crowdfunding is defined as a way to harness collective intelligence for journalism, as readers’ donations accumulate into judgments
The impact of downward social information on contribution decisions
In this paper we study the effect of downward social information in contribution decisions to fund public goods. We describe the results of a field experiment run in conjunction with the fundraising
The informational value of sequential fundraising
An Accurate Measurement of the Crowd-out Effect, Income Effect, and Price Effect for Charitable Contributions
In the past, empirical research on charitable contributions has focused on two issues: estimating the income and price elasticities of contributions and estimating the extent to which government