Ignorance is bliss? Information and risk on crowdfunding platforms.

ABSTRACT: This research examines the determinants of project success on crowdfunding platforms within a competitive context. We focus on the specific horizontal attributes of the project-attributes that do not affect the project returns but over which investors may have heterogeneous preferences-and on the project returns' risk level. We run a laboratory experiment with several set-ups, where multiple projects compete for funding simultaneously and where potential investors operate in a quasi-continuous time. We find the horizontal attributes' information affects project selection, while the risk level of the project returns affects the amount of collected funding.

SUBMITTER: D'Arcangelo C 

PROVIDER: S-EPMC10275436 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature