Signaling agent based exemplar model to investigate the diffusion of crowdfunding technology by incorporating behavioral anomalies

Abstract

Financial innovations in this technological era have unfolded nascent ways forcrowdfunding to grow swiftly Raising finance through crowdfunding is gaining popularity among entrepreneurs especially in India To make the crowdfunding campaigns successful the fundraisers must recognize different influential factors and complex behaviors of the funders Therefore it is of paramount importance for crowdfunding campaigners to target the right people with an optimal strategy to persuade them to finance their crowdfunding projects Existing diffusion models fail to contemplate the heterogeneity of the consumers and also fail to explore their complex behavior in investment decisions Hence the thesis proposes an agent based model to fill this aforementioned research gap The research study aims to explore the critical crowdfunding attributes which accelerate the adoption ofcrowdfunding campaign among the prospective investors by invoking a novel simulation mode Additionally the thesis intends to investigate the complex behavior of investors susceptible to Status Quo Loss Aversion Framing and Hyperbolic Discounting Bias in adopting crowdfunding technology in an agent based behavior model. newline