Are All Spillovers Created Equal? The Impact of Blockbusters and the Composition of Backers in Online Crowdfunding

Crowdfunding has emerged alongside the IT development. It is believed that overwhelmingly successful projects, blockbusters, would have significant impacts on the overall crowdfunding platform. However, there are notable limitations in previous studies. First, we consider how the advent of blockbusters impact according to the projects’ similarity with inside and outside clusters, rather than pre-determined category. Second, we examine the blockbusters’ heterogeneity with the type of backers that bring different effects. We use project-level dataset and apply novel clustering method to analyze blockbuster effects. We find empirical evidence that blockbusters have a spillover effect on same categories, especially inside clusters experience larger effects than outside clusters. In the long run, these spillover effects decay faster in outside clusters, but last long for inside cluster. Furthermore, this result changes according to the composition of backers. Our study presents a promising avenue for the application of semantic network analysis to the crowdfunding context.