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Should subscription-based content creators display their earnings on crowdfunding platforms? Evidence from Patreon

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  • Crosby, Paul
  • McKenzie, Jordi

Abstract

In January 2017, the subscription-based crowdfunding platform Patreon allowed their users (creators) the ability to hide their earnings from existing and potential subscribers. Prior to this, all monthly earnings were visible. We investigate what effect this policy change had on creators’ subscriber numbers over the following six months. Using double-robust and endogenous treatment estimation techniques, we find evidence that creators who removed the visibility of their earnings had more subscribers as a result. This suggests that the provision of social information does not lead to an increase in subscribers.

Suggested Citation

  • Crosby, Paul & McKenzie, Jordi, 2021. "Should subscription-based content creators display their earnings on crowdfunding platforms? Evidence from Patreon," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000421
    DOI: 10.1016/j.jbvi.2021.e00264
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    References listed on IDEAS

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    More about this item

    Keywords

    Crowdfunding; Patreon; Entrepreneurship; Natural experiment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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