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ARE PROMISES MEANINGLESS IN AN UNCERTAIN CROWDFUNDING ENVIRONMENT?

We use a prominent crowdfunding organization, Kickstarter, to analyze the factors that determine timeliness of delivery of rewards to financial backers. We seek to determine the extent to which promised rewards are delivered on time and to characterize projects that have stronger likelihood of timel...

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Published in:Economic Inquiry Vol. 54; no. 3; pp. 1621 - 1631
Main Authors: Hauge, Janice A., Chimahusky, Stanley
Format: Article
Published: Wiley-Blackwell Jul2016
Subjects:
Kickstarter PBC
Crowdsourcing
Social networks
Crowd funding
Fixed effects model
Online Access:View this record in EBSCOhost
Summary:We use a prominent crowdfunding organization, Kickstarter, to analyze the factors that determine timeliness of delivery of rewards to financial backers. We seek to determine the extent to which promised rewards are delivered on time and to characterize projects that have stronger likelihood of timely delivery of rewards. We find that lateness commonly occurs, yet cannot be explained universally with any given set of project characteristics, implying that the uncertainty of rewards involved with crowdfunding entities is difficult to overcome. ( JEL D71, D83, L82)