A duration-based model of crowdfunding project choice

Linda Salahaldin, Martin Angerer, Sascha Kraus and Donia Trabelsi

Finance Research Letters, 2019, vol. 29, issue C, 404-410

Abstract: We analyze the impact of the duration of a crowdfunding project. To do so, we model the dynamics of crowdfunding from the funder’s and the receiver’s points of view, by a dynamic programming approach for computing the value of a platform’s opportunity at a given time and deriving the optimal funding decision. Our results highlight the importance of project duration on a crowdfunder’s investment choice, yielding interesting observations such as the existence of a key interval where the remaining campaign duration can be set up for successful funding and a corresponding dependence on the link between project target and utility.

Keywords: Crowdfunding; Funding decision; Dynamic programming; Project duration (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:29:y:2019:i:c:p:404-410

DOI: 10.1016/j.frl.2018.11.005

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