Ignorance is bliss? Information and risk on crowdfunding platforms

PLoS One. 2023 Jun 16;18(6):e0286876. doi: 10.1371/journal.pone.0286876. eCollection 2023.

Abstract

This research examines the determinants of project success on crowdfunding platforms within a competitive context. We focus on the specific horizontal attributes of the project-attributes that do not affect the project returns but over which investors may have heterogeneous preferences-and on the project returns' risk level. We run a laboratory experiment with several set-ups, where multiple projects compete for funding simultaneously and where potential investors operate in a quasi-continuous time. We find the horizontal attributes' information affects project selection, while the risk level of the project returns affects the amount of collected funding.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Crowdsourcing*
  • Fund Raising*
  • Laboratories

Grants and funding

This study received a financial support by the Strategic Research Council at the Academy of Finland project Manufacturing 4.0 numbers 335980 and 335990.