Logo
Munich Personal RePEc Archive

Crowdfunding in a duopoly under asymmetric information

Miglo, Anton (2018): Crowdfunding in a duopoly under asymmetric information.

[thumbnail of MPRA_paper_89016.pdf]
Preview
PDF
MPRA_paper_89016.pdf

Download (234kB) | Preview

Abstract

Traditionally crowdfunding has been used for funding very innovative projects. Recently, however, companies have begun using crowdfunding to finance more traditional products where they compete against other sellers of similar products. One of the major platforms Indiegogo launched several projects consistent with this trend. This paper offers a model of a duopoly where firms can use crowdfunding prior to direct sales. The model is based on asymmetric information between competitors regarding the demand for the product. It provides several implications that have not yet been tested. For example we find that high-demand firms can use crowdfunding to signal their quality.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.