Strategic Information Revelation in Fund-Raising Campaigns
We consider a multi-stage game of fund-raising to study the announcement strategy of a fund-raiser, who is privately informed about the number of potential contributors, with the objective of collecting maximal contributions for a public project. We show that whether the public project is convex or non- convex can be the key to whether the fund-raiser announces or suppresses the information about the contributors. We also show that non-binding appeals by the fund-raiser requesting a specified minimum contribution from each contributor can often induce largest total contributions.