When Small Predicts Large: the Effect of Initial Small Contributions on Subsequent Contributions to a Crowdfunding Project

Yael Steinhart, Tel Aviv University, Israel
Leilei Gao, Chinese University of Hong Kong, China
Tingting Fan, Chinese University of Hong Kong, China
Large donations are considered to be vital for crowdfunding success. Herein, large-scale field data and lab experiments show that, counterintuitively, small (rather than large) initial donations increase subsequent donations. This effect is mediated by the lay belief that small (vs. large) donations are likely to be from strangers (vs. friends).
[ to cite ]:
Yael Steinhart, Leilei Gao, and Tingting Fan (2017) ,"When Small Predicts Large: the Effect of Initial Small Contributions on Subsequent Contributions to a Crowdfunding Project", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 1077-1077.