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When and how to intervene for saving an entrepreneur’s crowdfunding campaign

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  • Salahaldin, Linda
  • Varma, Vineeth S.
  • Elayoubi, Salah Eddine

Abstract

This paper explores the ability of entrepreneurs to influence the course of their crowdfunding campaigns. We study the interaction among crowdfunders and observe the existence of thresholds on the collected funds at some pivotal moments below which crowdfunders may massively abandon a project and identify hopeless, doubtful, and safe regions. This observation motivates a higher-level Stackelberg game, where the entrepreneur intervenes to influence the behavior of crowdfunders and move his campaign from his current region to a more favorable one. Our results show that the entrepreneur can play a crucial role even with a limited intervention.

Suggested Citation

  • Salahaldin, Linda & Varma, Vineeth S. & Elayoubi, Salah Eddine, 2022. "When and how to intervene for saving an entrepreneur’s crowdfunding campaign," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322003956
    DOI: 10.1016/j.frl.2022.103189
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    References listed on IDEAS

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