Crowdfunding as Gambling: Evidence from Repeated Natural Experiments

Tolga Demir, Ali Mohammadi*, Kourosh Shafi

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Abstrakt

Lenders in Prosper, one of the largest lending markets in the U.S., reduce their activity when playing multistate Powerball or Mega Millions lottery jackpot becomes attractive. This finding suggests that the desire for sensation seeking is an underlying motivation for participating in peer-to-peer crowdfunding markets; the thrill of winning a large lottery jackpot fulfills some lenders' desire for novelty and sensation seeking, thus decreasing their lending activity. We discuss our findings' implications for lenders, borrowers, platform organizers, and policymakers.
OriginalsprogEngelsk
Artikelnummer101905
TidsskriftJournal of Corporate Finance
Antal sider26
ISSN0929-1199
DOI
StatusUdgivet - 26 feb. 2021

Bibliografisk note

Epub ahead of print. Published online: 26 February 2021

Emneord

  • Peer-to-peer lending
  • Crowdfunding
  • Lottery
  • Gambling
  • Fin-tech

Citationsformater