Mind the Gap: Crowd-funding and the Role of Seed Money
Gil Epstein () and
No 2015-03, Working Papers from Bar-Ilan University, Department of Economics
We analyze voluntary private contributions to public goods and the role seed money plays in signaling the public good’s quality to potential subsequent contributors. We present a theoretical model and analyze two sets of naturally occurring data from crowd-funding platforms. After developing the theoretical background we find statistically significant switch points which distinguish between seed contributions to subsequent contributions. A positive change in contribution behavior after the switch suggests an increase in the perceived value of the public good. We find that the signal comprises the number of contributors and the average contribution (as proportion of targeted goal).
Keywords: Crowd-funding platform; Voluntary Private Provision; Public Goods; Seed money (search for similar items in EconPapers)
JEL-codes: H4 H42 H8 D8 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://econ.biu.ac.il/files/economics/working-papers/2015-03.pdf Working paper (application/pdf)
Working Paper: Mind the Gap: Crowd-Funding and the Role of Seed Money (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:biu:wpaper:2015-03
Access Statistics for this paper
More papers in Working Papers from Bar-Ilan University, Department of Economics Contact information at EDIRC.
Series data maintained by Department of Economics ().