Yes, I am currently writing an academic paper on the subject of crowdfunding with the intention to publish it in an academic, peer-reviewed journal. Submissions to academic journals require a submission fee of about $100, which I want to fund through crowdfunding. Since fees are about 10%, I have set the goal at €110. Any excess in contributions will be used for financing travel costs for presenting my work at economic conferences and seminars. (There are also a limited number of pledges with the reward that I present my paper to you personally in June.)
This campaign also allows me to understand better how Kickstarter works from the entrepreneur's side and to learn about the institutional details first hand. Quite a step for a theoretical economist, who normally does not get his hands dirty.
If you think this is cool and want to support me, please, pledge.
An initial preliminary version of the paper has been presented in seminars at multiple universities and academic conferences: EUI Florence, GSB Stanford, UCLA, Berkeley, and the TR15-conference in Tutzing, Germany.
The abstract of the current version is as follows:
Crowdfunding provides the innovation that, already before the investment, entrepreneurs can contract with consumers. It, thereby, reduces demand uncertainty and improves screening for valuable projects. Entrepreneurial moral hazard threatens these benefits. This paper therefore characterizes optimal contracts between consumers and an entrepreneur susceptible to moral hazard and demand uncertainty. It argues that current crowdfunding schemes reflect their salient features. Efficiency is sustainable only if expected returns exceed investment costs by a margin reflecting the degree of moral hazard. Constrained efficient mechanisms exhibit underinvestment. Crowdfunding destroys the classical separation between finance and marketing, but complements rather than substitutes traditional entrepreneurial financing.
Risks and challenges
Writing research papers is always a risky business and going through a refereeing process especially so. There is no guarantee that my paper gets published - but I will do my best.
And if you are worried about moral hazard: the "alpha" of my project is zero. (If this last sentence sounds cryptic to you, then you should read my paper!)Learn about accountability on Kickstarter
- (21 days)