Work in Progress
With the growing popularity of crowd-funded markets, smaller manufactories and entrepreneurs are regarding crowdfunding as their main venue of financing. To better understand the dynamic behaviors of participants (i.e. backers) and supplement existing works in crowdfunding research, the paper studies how early backers’ funding decisions influence the later participants in a special reward-based crowdfunding projects. By using vector autoregressive models, we plan to find empirical evidence for the existence of herding and bystander effects in our research context while controlling for strong signals of founders’ quality. With this research-in-progress, preliminary results and discussion are provided.
Bao, Zhuolan; Yang, Yuxing; and Chau, Michael, "The Dynamics of Funding Behaviors in Reward-Based Crowdfunding Projects" (2019). ICEB 2019 Proceedings. 54.