Early refund bonuses increase successful crowdfunding

Cason, Timothy N.; Tabarrok, Alexander; Zubrickas, Robertas

doi:10.1016/j.geb.2021.05.006

Cited by 14 publications

(8 citation statements)

References 52 publications

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“…Another example reports that fake social information had a short‐term positive effect on reward‐based projects and later negatively affected donations (Wessel et al, 2016). Perhaps quality signals are more profound in the beginning stage of a project (Cason et al, 2021; Koning & Model, 2013; Van Teunenbroek & Bekkers, 2020a), when uncertainty abounds.…”

Section: Crowdfunding Features and Mechanisms Impacting Giving Behaviormentioning

confidence: 99%

The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

Teunenbroek

Chiesa

Hesse

2023

Journal of Philanthropy and Marketing

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Which novelties do donation-and reward-based crowdfunding bring to philanthropy? Scholars interested in crowdfunding contributed to developing empirical explanations on which features impact online giving. However, the focus on theory building is limited. We developed a theoretical framework by categorizing the empirical findings reported in 198 studies, which resulted in four crowdfunding features impacting giving: (1) project creator, (2) social information,(3) rewards, and (4) project description. We explain why these features impact giving by integrating them with insights from several fields of social sciences, deriving ten giving mechanisms. We conclude that with impacting donations via crowdfunding, three giving themes exist: being affected by (1) the perceived project's quality, (2) social connections and/or (3) tangible rewards. The categorization of mechanisms for giving allows initiators to extract best practice examples for increasing the probability of successful crowdfunding projects considering the giving mechanisms.

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Section: Crowdfunding Features and Mechanisms Impacting Giving Behaviormentioning

confidence: 99%

The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

Teunenbroek

Chiesa

Hesse

2023

Journal of Philanthropy and Marketing

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“…Existing mechanisms like AON can also be modified. For example, producers can increase the success rate of their crowdfunding campaigns by offering refund bonuses (Cason and Zubrickas, 2019;Cason et al, 2021) and profit by introducing type-specific tokens (Ellman and Hurkens, 2019b). We depart from such modifications to AON and add to the literature by introducing a promising and easily implementable new crowdfunding mechanism, GMS, and test its performance relative to AON.…”

Section: State Of the Artmentioning

confidence: 99%

Comparing Crowdfunding Mechanisms: Introducing the Generalized Moulin-Shenker Mechanism

2022

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“…While most existing empirical studies of crowdfunding make use of observational data (for example, Meer, 2014 , Argo et al, 2020 ), there are also a small number of experiments on crowdfunding. Cason and Zubrickas ( 2017 , 2020 ) and Cason, Tabarrok, and Zubrickas ( 2020 ) conducted laboratory experiments in which they explored different incentive schemes such as bonuses for early contributions. Similarly, in a web-based experiment, Ansink et al ( 2017 ) tested the effects of seed money and the impact of the attraction effect.…”

Section: Introductionmentioning

confidence: 99%

Voluntary ‘donations’ versus reward-oriented ‘contributions’: two experiments on framing in funding mechanisms

Adena

Huck

2022

Exp Econ

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In an artefactual field experiment, we implemented a crowdfunding campaign for an institute’s summer party and compared donation and contribution framings. We found that the use of the word ‘donation’ generated higher revenue than the use of ‘contribution.’ While the individuals receiving the donation framing gave substantially larger amounts, those receiving the contribution framing responded more strongly to reward thresholds and suggestions. An additional survey experiment on MTurk indicated that the term ‘donation’ triggers more positive emotional responses and that emotions are highly correlated with giving. It appears that making a donation is perceived as a more voluntary act and is thus more successful at generating warm glow than making a contribution. We surmise that this extends to other funding mechanisms.

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Early refund bonuses increase successful crowdfunding

Cited by 14 publications

References 52 publications

The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

The contribution of crowdfunding for philanthropy: A systematic review and framework of donation and reward crowdfunding

Comparing Crowdfunding Mechanisms: Introducing the Generalized Moulin-Shenker Mechanism

Voluntary ‘donations’ versus reward-oriented ‘contributions’: two experiments on framing in funding mechanisms

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