Price and quality decisions in non-equity crowdfunding with advertising effect

• 1、School of Economic Management, Nanjing University of Science and Technology, Nanjing 210094

Abstract：Based on non-equity crowdfunding, we investigate the optimal pricing and quality decisions when creator faces on two comparable potential investors; combined with the advertising effect triggered by crowdfunding, we study the pricing decision in the follow-up sales period, also we compare the prices of two periods; when potential investors have different scale, we explore the factors that affect the crowdfunding success rate, and follow-up sales period decision. Research shows: based on different product valuations, crowdfunding may be single product or double products, the follow-up sales also have two kinds. Under single product mode, follow-up sales price is lower than crowdfunding price; under double product mode, low quality product follow-up sales price is larger than crowdfunding, large quality product has same price interval under two modes. Through the design of reasonable crowdfunding mechanism, creators can introduce new products successfully, and make a good follow-up sales decisions.

Keywords： crowdfunding pricing quality decision advertising effect