Document Type

Discussion Paper

Publication Date


CFDP Number


CFDP Revision Date

February 2023

CFDP Pages


Journal of Economic Literature (JEL) Code(s)

C73, L26, M13


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.

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