Product Development in Crowdfunding: Theoretical and Empirical Analysis
نویسندگان
چکیده
Crowdfunding goes beyond raising funds. Entrepreneurs often use crowdfunding to solicit feedback from customers improve their products, and may therefore prefer launch campaigns for a basic version of products with few or no enhancements (i.e., limited features). Yet, not be persuaded by campaign if product appears too basic. In view this trade-off, key question an entrepreneur is how far should enhanced before launching campaign. Analyzing game-theoretical model testing its predictions empirically, we study product's level enhancement at influences both whether continues the during successful. We show that as increases, likelihood improvement first increases (because are more likely provide feedback) then decreases increased production cost entrepreneur). Furthermore, although our theoretical intuitively predicts success will always increase when launches product, empirical analysis shows decreases. This counterintuitive result due being overwhelmed complexity highly products. Finally, while experts believe much possible campaign, best strategy.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3833525