Creators and backers in rewards-based crowdfunding: Will incentive misalignment affect Kickstarter's sustainability?

• Main Authors: Wessel, Michael, Gleasure, Rob, KAUFFMAN, Robert John
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: rewards-based crowdfunding; Kickstarter; fundraising; Databases and Information Systems; E-Commerce; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/sis_research/6850; https://ink.library.smu.edu.sg/context/sis_research/article/7853/viewcontent/Creators_0639_2021_pvoa.pdf
• Institution: Singapore Management University

Incentive misalignment in rewards-based crowd-funding occurs because creators may benefit disproportionately from fundraising, while backers may benefit disproportionately from the quality of project deliverables. The resulting principal-agent relationship means backers rely on campaign information...