Economics and Finance
Our PhD students
- Role Title: PhD student
- Address: Richmond Building Portland Street Portsmouth PO1 3DE
- Telephone: tbc
- Email: tbc
- Department: Economics and Finance
- Faculty: Portsmouth Business School
An investigation into the economics of crowdfunding in the creative and cultural industries
Synopsis: Crowdfunding represents a new and innovative way for a wide variety of commercial, semicommercial, and noncommercial enterprises to attract an audience, raise capital, and progress towards execution through the financial contributions of large numbers of interested parties. Although the impact of crowdfunding has been felt across a number of established markets, it is having a particularly profound effect on the creative and cultural industries. Through taking advantage of the ‘wisdom of crowds’, funding may be achieved for cultural works which would otherwise be rejected by private investors and public funding bodies. Crowdfunding also has the potential to act as a novel alternative to patronage and copyright protection as a partial solution to the ‘freerider’ problem in the production of cultural goods. In undertaking this research I will perform both quantitative and qualitative analysis of a broad range of crowdfunding projects within the creative industries, including music, film, theater and video games. It is hoped that the work undertaken on this project will help develop a more comprehensive understanding of the prevailing market forces in crowdfunding for creative industries, developing detailed theoretical models and gathering evidence of both the supply and demand sides of the market. The project will ultimately blend elements of supplyside pricing theory and price discrimination with demand side valuation of product, experience, and economic theories of altruism and patronage. The specific research questions that would be addressed by the project include:
• In theoretical and practical terms, to what extent has crowdfunding disrupted traditional models of funding in the creative industries?
• Does the rise of crowdfunding further jeopardise the existence of market intermediaries such as music and film studios and is there the potential to develop a system of mass patronage for the arts in an environment where public funding is coming increasingly under threat?
• Does crowdfunding lead to increased diversity in creative output? Do crowdfunded projects deliver ‘more of the same’ or is there evidence of genuine innovation arising as a result of the varied tastes and preferences of the crowd?
• Are there quantifiable differences in outcomes such as reviews from professional critics and commercial performance for projects that have been crowdfunded versus those that have received traditional funding?
• How important are social capital levels of the creative(s) behind crowdfunding projects, recognising the inherently endogenous nature of the relationship between social media presence and project outcomes? Is this relationship particularly prevalent in the creative industries?
• How prevalent are cases of mismanagement and fraud in crowdfunding for the creative industries and what measures can funders, platforms and policy makers take to minimise the risks associated with low levels of monitoring and enforcement?