The DOI matches its Crossref record; 26 of the 26 references it cites were found in a registry or an index.
Some Simple Economics of Crowdfunding
Open accessAbstract
It is not surprising that the financing of early-stage creative projects and ventures is typically geographically localized since these types of funding decisions are usually predicated on personal relationships and due diligence requiring face-to-face interactions in response to high levels of risk, uncertainty, and information asymmetry. So, to economists, the recent rise of crowdfunding—raising capital from many people through an online platform—which offers little opportunity for careful due diligence and involves not only friends and family but also many strangers from near and far, is initially startling. On the eve of launching equity-based crowdfunding, a new market for early-stage finance in the United States, we provide a preliminary exploration of its underlying economics. We highlight the extent to which economic theory, in particular transaction costs, reputation, and market design, can explain the rise of nonequity crowdfunding and offer a framework for speculating on how equity-based crowdfunding may unfold. We conclude by articulating open questions related to how crowdfunding may affect social welfare and the rate and direction of innovation.
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Cites
The dynamics of crowdfunding: An exploratory study
Mollick, E. (2014) · Journal of Business Venturing · doi:10.1016/j.jbusvent.2013.06.005 · Cited by 4,221
Some Simple Economics of Open Source
Lerner, J., & Tirole, J. (2002) · The Journal of Industrial Economics · doi:10.1111/1467-6451.00174 · Cited by 2,355
What Do Entrepreneurs Pay for Venture Capital Affiliation?
Hsu, D. H. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00680.x · Cited by 1,359
Economics of Product Development by Users: The Impact of “Sticky” Local Information
von Hippel, E. (1998) · Management Science · doi:10.1287/mnsc.44.5.629 · Cited by 872
Experienced entrepreneurial founders, organizational capital, and venture capital funding
Hsu, D. H. (2007) · Research Policy · doi:10.1016/j.respol.2007.02.022 · Cited by 867
Rational Herding in Microloan Markets
Zhang, J., & Liu, P. (2012) · Management Science · doi:10.1287/mnsc.1110.1459 · Cited by 853
Crowdfunding of Small Entrepreneurial Ventures
Schwienbacher, A., & Larralde, B. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1699183 · Cited by 846
Agrawal, A., Catalini, C., & Goldfarb, A. (2011) · National Bureau of Economic Research · doi:10.3386/w16820 · Cited by 720
Self-citationHow user innovations become commercial products: A theoretical investigation and case study
Baldwin, C., Hienerth, C., & von Hippel, E. (2006) · Research Policy · doi:10.1016/j.respol.2006.04.012 · Cited by 623
Crowdfunding Creative Ideas: The Dynamics of Project Backers in Kickstarter
Kuppuswamy, V., & Bayus, B. L. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2234765 · Cited by 528
Cited by
The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes
Nambisan, S., Wright, M., & Feldman, M. (2019) · Research Policy · doi:10.1016/j.respol.2019.03.018 · Cited by 3,089
Crowdfunding: Tapping the right crowd
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014) · Journal of Business Venturing · doi:10.1016/j.jbusvent.2013.07.003 · Cited by 2,690
Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions
Agrawal, A., Catalini, C., & Goldfarb, A. (2015) · Journal of Economics & Management Strategy · doi:10.1111/jems.12093 · Cited by 1,019
Self-citationRational Herding in Microloan Markets
Zhang, J., & Liu, P. (2012) · Management Science · doi:10.1287/mnsc.1110.1459 · Cited by 853
Anglin, A. H., Short, J. C., Drover, W., Stevenson, R. M., McKenny, A. F., & Allison, T. H. (2018) · Journal of Business Venturing · doi:10.1016/j.jbusvent.2018.03.003 · Cited by 451
Metadata
- Authors
- Agrawal, A., Catalini, C., & Goldfarb, A.
- Venue
- Innovation Policy and the Economy
- Publisher
- University of Chicago Press
- Published
- 2014-01
- Volume
- 14
- Pages
- 63-97
- ISSN
- 1531-3468 (ISSN-L)
- 1537-2618
- OpenAlex
- W2101743006
- Cited by
- 845
- References
- 26
- FWCI
- 101.10
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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