Quotation Baici, Eliana, Capraro, Laura, Zagler, Martin. 2017. Lemmings in the Crowd: Success and Failure of Crowdfunding Platforms. International Review of Social Sciences (Rivista Internazionale di Scienze Sociali), 125 (4), 337-350.


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Abstract

This paper investigates the determinants of success and failure of crowdfunding. We have drawn a random sample of 120 crowdfunding initiatives from the crowdfunding platforms Kickstarter and Indiegogo. We extracted relevant characteristics of the project and tracked their performance over a 30 day period. Using probit models, GLS estimators and dynamic panel methods, we estimated success probabilities. We found that crowdfunding is extremely persistent, and early success in attracting financing will improve the chance to get funded in the end. Presentation and instant gratification matters, as do moderate financial goals. We have not found any sectoral bias, which would be a direct indication of market inefficiencies. However, we observe a bias towards projects launched by all male project teams. There are no obvious explanations for this gap, so we must conclude that crowdfunding exhibits a gender bias.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Review of Social Sciences (Rivista Internazionale di Scienze Sociali)
Language English
Title Lemmings in the Crowd: Success and Failure of Crowdfunding Platforms
Volume 125
Number 4
Year 2017
Page from 337
Page to 350
Reviewed? Y
URL http://riss.vitaepensiero.it
DOI n.a.
Open Access N
JEL F23

Associations

People
Zagler, Martin (Details)
External
Baici, Eliana (UPO University of Eastern Piedmont, Italy)
Capraro, Laura (n.a., Italy)
Organization
Research Institute for International Taxation FI (Details)
Institute for Macroeconomics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5311 Public finance (Details)
5341 Economic policy (Details)
5343 Economic theory (Details)
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