This paper investigates the optimal design of crowdfunding where crowdfunders are potential consumers with standard … motivations and entrepreneurs are profit-maximizing agents. We characterize the typical crowdfunding mechanism where the …-seeking can worsen. Crowdfunding platforms can raise threshold credibility. So we also compare outcomes when the entrepreneur …

In the wake of the global economic crisis, crowdfunding has become an increasingly significant alternative form of … traditional financiers. Besides the benefits of crowdfunding, its risks should be also mentioned as they will shape the future …