Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions

  title={Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions},
  author={Ajay Agrawal and Christian Catalini and Avi Goldfarb},
  journal={ERN: Other Microeconomics: Intertemporal Firm Choice \& Growth},
type="main"> We examine a crowdfunding platform that connects artists with funders. Although the Internet reduces many distance-related frictions, local and distant funders exhibit different funding patterns. Local funders appear less responsive to information about the cumulative funds raised by an artist. However, this distance effect appears to proxy for a social effect: it is largely explained by funders who likely have an offline social relationship with the artist (“friends and family… 
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