Winner takes all? The "blockbuster effect" in crowdfunding platforms

Jingjing Liu, Lusi Yang, Zhiyi Wang, Jungpil Hahn

Research output: Chapter in Book/Report/Conference proceedingConference contribution

18 Scopus citations

Abstract

Crowdfunding has gained momentum in recent years. Even though an increasing amount of research has been devoted to the economic value of crowdfunding marketplaces, the interactions and effects among crowdfunding projects have yet to be fully studied. The current study strives to bridge this gap by examining the impacts of "blockbuster projects" - i.e., overwhelmingly successful projects - on the crowdfunding platform. Hypotheses are formulated based on the theory of network effects. Our preliminary results suggest the blockbuster projects exhibit positive spill-over effects within project category but cannibalization effects across categories. We also find evidence of lasting positive/negative network externality within/across category/categories. Further analysis suggests that fresh backers who are attracted to the platform by the blockbuster projects tend to be more engaged and more active. Our research aims to extend the emergent crowdfunding literature by examining network externalities among projects. We also provide practical implications for project creators and platform administrators.

Original languageEnglish (US)
Title of host publication2015 International Conference on Information Systems
Subtitle of host publicationExploring the Information Frontier, ICIS 2015
PublisherAssociation for Information Systems
ISBN (Print)9780996683111
StatePublished - 2015
Externally publishedYes
Event2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015 - Fort Worth, United States
Duration: Dec 13 2015Dec 16 2015

Publication series

Name2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015

Other

Other2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015
Country/TerritoryUnited States
CityFort Worth
Period12/13/1512/16/15

Keywords

  • Blockbuster effects
  • Crowdfunding
  • Economic value
  • Innovation
  • Network effects
  • Network externality

ASJC Scopus subject areas

  • Computer Science Applications
  • Statistics, Probability and Uncertainty
  • Library and Information Sciences
  • Applied Mathematics

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