Improving donation distribution for crowdfunding: An agent-based model

Yi Chieh Lee, Chi Hsien Yen, Wai Tat Fu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Donation-based crowdfunding has the potential to democratize capital raising by soliciting donations directly from the public through the Web and social media. These crowdfunding platforms, however, often function as unregulated open markets, in which there is minimal intervention to influence donation distribution across projects. In fact, research on crowdfunding hints that donation distribution in most crowdfunding platforms are suboptimal: while the overall success rates of crowdfunding projects are often low, a significant proportion of projects receive donations way over their targets. In this paper, we propose a new donation distributing system that aim to (a) distribute donations more effectively among the projects, and (b) align the allocation of donations with the preferences of donors. An agent-based model was developed to test the proposed system. Results showed that the proposed system not only increased the overall success rates of projects, but also led to more successes for projects preferred by donors. Implications to future crowdfunding platforms are discussed.

Original languageEnglish (US)
Title of host publicationSocial, Cultural, and Behavioral Modeling - 9th International Conference, SBP-BRiMS 2016, Proceedings
EditorsNathaniel Osgood, Kevin S. Xu, David Reitter, Dongwon Lee
PublisherSpringer-Verlag
Pages3-12
Number of pages10
ISBN (Print)9783319399300
DOIs
StatePublished - Jan 1 2016
Event9th International Conference on Social Computing, Behavioral-Cultural Modeling, and Prediction and Behavior Representation in Modeling and Simulation, SBP-BRiMS 2016 - Washington, United States
Duration: Jun 28 2016Jul 1 2016

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume9708 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Other

Other9th International Conference on Social Computing, Behavioral-Cultural Modeling, and Prediction and Behavior Representation in Modeling and Simulation, SBP-BRiMS 2016
CountryUnited States
CityWashington
Period6/28/167/1/16

Keywords

  • Crowdfunding
  • Fundraising
  • Market

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science(all)

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