traditional finance and optimizes subsequent pricing. We prove that crowdfunding is a general optimal mechanism in our baseline …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 …

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 …

We study the effects of investor protection on the availability of external finance, entrepreneurship, and creation of … surplus between entrepreneurs and financiers. The results indicate that anything that increases (decreases) entrepreneurship …