Crowdfunding and Uncertain Decision Problems—Applying Shannon Entropy to Support Entrepreneurs

Author(s)
Valerie Busse, Christine Strauss
Abstract

Crowdfunding has become an interesting and widely accepted alternative to finance start-ups and projects. This paper presents an introductory motivation by making transparent recent developments in crowdfunding; furthermore, it provides insights into the decision-making of the involved crowdfunding actors in their triadic relationship. Based on empirical data collected from five in-depth expert interviews we identified several factors, which influence the behavioral decision process of an entrepreneur when making a choice on a crowdfunding platform for their crowdfunding campaign. On the example of two of those identified factors we formalize the entrepreneur’s decision process using Shannon Entropy and give a numerical example. Results are interpreted and directions for further research are given.

Organisation(s)
Department of Marketing and International Business
External organisation(s)
Comenius University Bratislava
Volume
2
Pages
289-304
No. of pages
16
DOI
https://doi.org/10.1007/978-3-030-76632-0_10
Publication date
2021
Peer reviewed
Yes
Austrian Fields of Science 2012
502050 Business informatics, 502007 E-commerce, 502054 Entrepreneurship
ASJC Scopus subject areas
Computer Science (miscellaneous), Control and Systems Engineering, Automotive Engineering, Social Sciences (miscellaneous), Economics, Econometrics and Finance (miscellaneous), Control and Optimization, Decision Sciences (miscellaneous)
Portal url
https://ucrisportal.univie.ac.at/en/publications/crowdfunding-and-uncertain-decision-problemsapplying-shannon-entropy-to-support-entrepreneurs(7611094b-5d16-4338-8e0d-ebd64e06d120).html