TY  - JOUR
A1  - Koch, Jascha-Alexander
A1  - Lausen, Jens
A1  - Kohlhase, Moritz
T1  - Internalizing the externalities of overfunding: an agent-based model approach for analyzing the market dynamics on crowdfunding platforms
T2  - Journal of business economics
N2  - Crowdfunding platforms offer project initiators the opportunity to acquire funds from the Internet crowd and, therefore, have become a valuable alternative to traditional sources of funding. However, some processes on crowdfunding platforms cause undesirable external effects that influence the funding success of projects. In this context, we focus on the phenomenon of project overfunding. Massively overfunded projects have been discussed to overshadow other crowdfunding projects which in turn receive less funding. We propose a funding redistribution mechanism to internalize these overfunding externalities and to improve overall funding results. To evaluate this concept, we develop and deploy an agent-based model (ABM). This ABM is based on a multi-attribute decision-making approach and is suitable to simulate the dynamic funding processes on a crowdfunding platform. Our evaluation provides evidence that possible modifications of the crowdfunding mechanisms bear the chance to optimize funding results and to alleviate existing flaws.
KW  - Crowdfunding
KW  - Overfunding
KW  - Internalization of externalities
KW  - Pigouvian tax
KW  - Agent-based modeling
KW  - Market engineering
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/63687
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-636874
SN  - 1861-8928
N1  - Open Access funding enabled and organized by Projekt DEAL.
VL  - 91
IS  - 9
SP  - 1387
EP  - 1430
PB  - Springer
CY  - Berlin ; Heidelberg
ER  -