Document Type
Discussion Paper
Publication Date
12-2018
CFDP Number
2149R2
CFDP Revision Date
February 2023
CFDP Pages
96
Journal of Economic Literature (JEL) Code(s)
C73, L26, M13
Abstract
Fundraising campaigns draw support from a wide pool of contributors. Some contributors are interested in private rewards offered in exchange for contributions (buyers), whereas others are publicly-minded and value success (donors). Buyers face a coordination problem because of the positive externalities of campaign success. A leadership donor who strategically times contributions can promote coordination by dynamically signaling his valuation. The ability to signal increases the probability of success and benefits all participants relative to the donor valuation being known. We validate our modeling assumptions and theoretical predictions using Kickstarter data.
Recommended Citation
Deb, Joyee; Öry (Oery), Aniko; and Williams, Kevin R., "Aiming for the Goal: Contribution Dynamics of Crowdfunding" (2018). Cowles Foundation Discussion Papers. 2726.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2726