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A duration-based model of crowdfunding project choice

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  • Salahaldin, Linda
  • Angerer, Martin
  • Kraus, Sascha
  • Trabelsi, Donia

Abstract

We analyze the impact of the duration of a crowdfunding project. To do so, we model the dynamics of crowdfunding from the funder’s and the receiver’s points of view, by a dynamic programming approach for computing the value of a platform’s opportunity at a given time and deriving the optimal funding decision. Our results highlight the importance of project duration on a crowdfunder’s investment choice, yielding interesting observations such as the existence of a key interval where the remaining campaign duration can be set up for successful funding and a corresponding dependence on the link between project target and utility.

Suggested Citation

  • Salahaldin, Linda & Angerer, Martin & Kraus, Sascha & Trabelsi, Donia, 2019. "A duration-based model of crowdfunding project choice," Finance Research Letters, Elsevier, vol. 29(C), pages 404-410.
    • Handle: RePEc:eee:finlet:v:29:y:2019:i:c:p:404-410
    DOI: 10.1016/j.frl.2018.11.005
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    References listed on IDEAS

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    Cited by:

    1. Anton Miglo, 2022. "Crowdfunding and bank financing: substitutes or complements?," Small Business Economics, Springer, vol. 59(3), pages 1115-1142, October.
    2. Chakhar, Salem & Ishizaka, Alessio & Thorpe, Andy & Cox, Joe & Nguyen, Thang & Ford, Liz, 2020. "Calculating the relative importance of condition attributes based on the characteristics of decision rules and attribute reducts: Application to crowdfunding," European Journal of Operational Research, Elsevier, vol. 286(2), pages 689-712.
    3. de Andrés, Pablo & Correia, Ricardo & Rezola, Álvaro & Suárez, Nuria, 2022. "The role of funding portals as signaling offering quality in investment crowdfunding," Finance Research Letters, Elsevier, vol. 46(PA).
    4. Chu, Tiankuo & Wei, Xu & Zhou, Yimin, 2021. "The pricing and efficiency of pre-Sale crowdfunding," Finance Research Letters, Elsevier, vol. 40(C).
    5. Lenny Phulong Mamaro & Athenia Bongani Sibindi, 2024. "The Role of Entrepreneur’s Face Disclosure on Crowdfunding Success," Risks, MDPI, vol. 12(10), pages 1-19, October.

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