We characterize optimal reward-based crowdfunding where production is contingent on an aggregate funding threshold …. Crowdfunding adapts project-implementation to demand (market-testing) and its multiple prices enhance rent-extraction via …-Or-Nothing platforms, raises profits but can lower consumer welfare. When new buyers arrive ex-post, crowdfunding's market-test complements …

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 …