Where does the human lie in crowdfunding: An exploration of the dark side of social mechanisms

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2021

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Mathieu-Claude Chaboud et al., « Where does the human lie in crowdfunding: An exploration of the dark side of social mechanisms », Entreprendre & Innover, ID : 10670/1.v854n4


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Crowdfunding is often considered to be a more prosocial than traditional means of financing. In order to analyze and validate this assumption, we explore the social mechanisms of reward-based crowdfunding present in four illustrative campaigns. We propose a typology of the tools, mechanisms, and organizational methods used in these fundraising initiatives and show how entrepreneurs can use a combination of rules, communication, and the stated philosophy or purpose of their venture not only to succeed but also sometimes to engage in free-riding behavior.

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