Research On Incentive Utility And Profit Game Of Innovation Project In Reward-based Crowdfunding

As the economic development are sweeping the globe which promoted by Internet,the economic situation of China is in a new pattern where innovation could drive the development.The rapid development of the Internet financial industry provides a new way of thinking for the public people to start their own business and to make innovation.Raising public financing through the model of crowdfunding has become an effective way to broaden the financial system which served the innovation and venture.Because of its low threshold,diversity,innovation and participation,the crowdfunding model has become a new kind of effective investment and financing model which could contribute to both the investor and crowdfunder achieving the commom profit through integrating social decentralized financial resources.The Crowdfunding model mainly includes reward-based crowdfunding,equity-based crowdfunding,debt-based crowdfunding,donation-based crowdfunding and so on.But in the actual operation,the crowdfunding model is still in the growth period so that more than half of the public crowdfunding projects were failed.How to promote the success rate of these public crowdfunding projects has become a hot spot urging to be solved.At present,there are some successful platforms of crowdfunding such as Kickstarter,Jingdong crowdfunding etc,and these platforms are mainly running the reward-based projects.Therefore,we would through studying two different models from different stages including the early stage and the middle stage to analyzing the impacts of financing success rate of crowdfunding in view of reward-based crowdfunding in this paper.In the first stage of this paper,we established the incentive utility model with the characteristics of the main participants-crowdfunders and investors according to the cost-benefit theory,researching the effect of two factors which included project quality and discount rate.The results showed that:in three different assumptions,the two major factors project quality and rate of return have some incentive effect on both raisers and inventors through affecting the expected utility of both parties and we proposed a reasonable conjecture of the existence that the utility of both parties can reach the optimal state.In the second stage of this paper,aiming at the characteristics of the two main players in the process of crowdfunding to find out how to achieve the optimal state of both parties,our paper analyzed the profit game of innovation cooperation between investors and crowdfunders,then discussed the influence on the interests and decisions of both sides based on four explanatory variables which were production,discount coefficient,degree of product launch and innovation so that prompting investors and crowdfunders to choose the corresponding strategy under considering the environment variable the products' information.The results showed that under the condition of innovation cooperation case with complete information and incomplete information,investors and crowdfunders can both achieve the consistent equilibrium and they would get their biggest benefits.At the same time we put forward that the innovation cooperation might be a multi-win strategy.The results of this paper enriched the relevant research results of crowdfunding,established the incentive utility model in view of promoting the success rate in the reward-based crowdfunding projects,and selected a new method innovatively which called profit game to explore the choice of multi-win strategy for the innovation cooperation between investors and crowdfunders.Finally we put forward that innovation cooperation would be a multi-win strategy which would provide with the innovative significance and reference value for the further in-depth study of crowdfunding.