Волож Тимофей Аркадьевич
Goals As Reference Points: A Behavioural Model Of Crowdfunding
Совместная программа по экономике НИУ ВШЭ и РЭШ
Reward-based crowdfunding is quite a new form of alternative finance that has rapidly developed over the last several years. Since crowdfunding investors (bakers) can easily observe the progress of a project, the decision-making of a baker depends on the investing decisions of other backers and hence on the expectations of other bakers’ choices. Broadly speaking, an individual’s pledge is defined by her expectations of whether the project is going to be successful and whether her pledge will be worthwhile (critical). According to Kickstarter official statistics, backers tend to support the project a lot at its launch and right before its finish, whereas in the middle of a project there is a significant decrease of the number of pledges. In this paper I am going to build a behavioral model that could explain this U-shape dependency.