Crowdfunding allows individual or enterprises to raise the funds for a project by drawing on small contributions from a relatively large number of individuals. Previous literature has investigated the crowdsourcing phenomenon by mainly focusing on what influences the probability of reaching the crowdfunding success, i.e. the financial target. In our work we focus on the customer’s level of participation into a project (i.e. the donated amount) and not on the success of the project. We aim at understanding how project’s characteristics as well as others’ contributions influence individuals’ degree of contribution to a project, given that he/she has decided to contribute. To do so, we analyze what influences the amount donated by examining 1341 donations presented into an online crowdsourcing platform. Our results show that individuals are more inclined to increase the amount donated when the project’s target (i.e. total amount requested) is small. Moreover, we show that the amount that the individual is willing to donate is affected by the number of participants donating, but in a non-linear way. This means that participants increase the amount at the beginning, but then reduce their donation amount when they perceive that the target is close and more likely to be reached. Finally, we document that increasing the number of suggested donation amounts increases participants’ propensity to donate.
The Determinants of Participation into Online Crowdfunding
Zammit, Alessandra
;Valentini, Sara;Montaguti, Elisa
2017
Abstract
Crowdfunding allows individual or enterprises to raise the funds for a project by drawing on small contributions from a relatively large number of individuals. Previous literature has investigated the crowdsourcing phenomenon by mainly focusing on what influences the probability of reaching the crowdfunding success, i.e. the financial target. In our work we focus on the customer’s level of participation into a project (i.e. the donated amount) and not on the success of the project. We aim at understanding how project’s characteristics as well as others’ contributions influence individuals’ degree of contribution to a project, given that he/she has decided to contribute. To do so, we analyze what influences the amount donated by examining 1341 donations presented into an online crowdsourcing platform. Our results show that individuals are more inclined to increase the amount donated when the project’s target (i.e. total amount requested) is small. Moreover, we show that the amount that the individual is willing to donate is affected by the number of participants donating, but in a non-linear way. This means that participants increase the amount at the beginning, but then reduce their donation amount when they perceive that the target is close and more likely to be reached. Finally, we document that increasing the number of suggested donation amounts increases participants’ propensity to donate.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
