ARE PROMISES MEANINGLESS IN AN UNCERTAIN CROWDFUNDING ENVIRONMENT?

Abstract

We use a prominent crowdfunding organization, Kickstarter, to analyze the factors that determine timeliness of delivery of rewards to financial backers. We seek to determine the extent to which promised rewards are delivered on time and to characterize projects that have stronger likelihood of timely delivery of rewards. We find that lateness commonly occurs, yet cannot be explained universally with any given set of project characteristics, implying that the uncertainty of rewards involved with crowdfunding entities is difficult to overcome. ( JEL D71, D83, L82)