Playing both sides of the market: Success and reciprocity on crowdfunding platforms

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

54 Scopus citations

Abstract

Crowdfunding platforms enable the financing of projects by soliciting small investments from a large base of potential backers over the internet. These platforms create a dynamic funding network. We use data collected from Kickstarter, the largest crowdfunding platform, to study some of these network dynamics. We focus on project owners who choose to operate on both sides of the market, backing the projects of others. We study the impact of such out-of-project actions on the successful financing of projects. We find that an owner's backinghistory has a significant effect on financing outcomes. We also show that owners who are backers form a sub-community which is active in backing projects, especially those initiated by its members. We find evidence for both direct and indirect reciprocity. Backing the projects of other is a rewarding strategy. Projects created by active backers have higher success rates, attract more backers and collect more funds.

Original languageEnglish
Title of host publicationInternational Conference on Information Systems (ICIS 2013)
Subtitle of host publicationReshaping Society Through Information Systems Design
PublisherAIS/ICIS Administrative Office
Pages3052-3069
Number of pages18
ISBN (Print)9781629934266
DOIs
StatePublished - 2013
EventInternational Conference on Information Systems, ICIS 2013 - Milan, Italy
Duration: 15 Dec 201318 Dec 2013

Publication series

NameInternational Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design
Volume4

Conference

ConferenceInternational Conference on Information Systems, ICIS 2013
Country/TerritoryItaly
CityMilan
Period15/12/1318/12/13

Keywords

  • Crowdfunding
  • E-Finance
  • IS-Economics
  • Reciprocity
  • Social Networks

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