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The economics of crowdfunding platforms

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  • Belleflamme, Paul
  • Omrani, Nessrine
  • Peitz, Martin

Abstract

This paper provides a description of the crowdfunding sector, considering investment-based crowdfunding platforms as well as platforms in which funders do not obtain monetary payments. It lays out key features of this quickly developing sector and explores the economic forces at play that can explain the design of these platforms. In particular, it elaborates on cross-group and within-group external effects and asymmetric information on crowdfunding platforms.

Suggested Citation

  • Belleflamme, Paul & Omrani, Nessrine & Peitz, Martin, 2015. "The economics of crowdfunding platforms," Information Economics and Policy, Elsevier, vol. 33(C), pages 11-28.
    • Handle: RePEc:eee:iepoli:v:33:y:2015:i:c:p:11-28
    DOI: 10.1016/j.infoecopol.2015.08.003
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    More about this item

    Keywords

    Crowdfunding; Platform markets; Network effects; Asymmetric information; P2P lending;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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