Team rivalry and lending on crowdfunding platforms : an empirical analysis

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

View graph of relations

Related Research Unit(s)

Detail(s)

Original languageEnglish
Article number17
Journal / PublicationFinancial Innovation
Volume2
Online published2 Dec 2016
Publication statusPublished - 2016

Link(s)

Abstract

Background
Prosocial crowdfunding helps the underprivileged obtain non-profit seeking loans from multitudinous lenders. Some platforms introduce team competition to motivate member participation and may thus induce team rivalry.

Methods
We investigate how team rivalry affects lending decisions using data from Kiva.org. We argue that a rivalry relationship may engage teams to compete directly against rivals by lending to the same project or prevent them from doing so because they intend not to cooperate.

Result
We find that a team is less likely to lend to a project that has received funding from its rival team, suggesting that rival teams tend to avoid cooperation.

Conclusions
We discuss the implications of our findings for crowdfunding and competition-based motivation mechanisms in general.

Research Area(s)

  • Crowdfunding, Lending decision, Prosocial lending, Rivalry relationship

Download Statistics

No data available