This article is the first one that considers a model of the choice between the different types of crowdfunding, which … contains elements of the asymmetric information approach and behavioral finance (overconfident entrepreneurs). The model … provides several implications, most of which have not yet been tested. Our model predicts that equity-based crowdfunding is …

Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to … finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms … where two competing firms can use crowdfunding prior to direct sales. The model provides several implications that have not …

This paper offers a model of crowdfunding that represents a growing area of interest among practitioners and theorists … implications that have not yet been tested. For example we find that high-quality projects prefer reward-based crowdfunding. The …

-exempt assets are liquidated. Entrepreneurs can undo this “insurance” by posting collateral. The opportunity cost of doing so is … lower for safer entrepreneurs who face a lower probability of default. Accordingly, we show that under adverse selection, as … tests using data from the US Survey of Small Business support our theory …

Reward-based crowdfunding has enabled entrepreneurs to interact with consumers even before the product launch. However … and estimate an integrated model of crowdfunding demand and entrepreneurs' product-launch decisions. We find that … information revealed from crowdfunding sales has sizable impacts on the product-launch decisions of entrepreneurs with low …

This article is the first one that analyzes the choice between crowdfunding and traditional financing as a security … design problem. The value of this research comes from several points: 1) the origin of crowdfunding and its features has not … been completely explained; 2) crowdfunding regulation is still in the process of development; 3) existing literature on …

Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to … finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms … where two competing firms can use crowdfunding prior to direct sales. The model provides several implications that have not …