Crowdfunding to Make a Difference: the Role of Choice in Funding Social Ventures

Scott Sonenshein, Rice University, USA
Michal Herzenstein, University of Delaware, USA
Utpal Dholakia, Rice University, USA
Using data from Kickstarter.com, we demonstrate a U-shaped relationship between the number of choices offered to contributors and funding of social ventures. We use laboratory data to explain this departure from the choice-overload hypothesis, finding that venture type (social versus non-social) shifts decision making from rational/economic to intuitive/behavioral approaches.
[ to cite ]:
Scott Sonenshein, Michal Herzenstein, and Utpal Dholakia (2013) ,"Crowdfunding to Make a Difference: the Role of Choice in Funding Social Ventures ", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.