A Stochastic Model for Optimizing Crowdfunding Campaign Success
Résumé
Crowdfunding is popular among entrepreneurs who aim to bypass classical funding channels and directly address the crowd via Internet-based Crowdfunding platforms. This work introduces a model to enhance crowdfunding by strategically managing friends and family (F&F) investments. It studies the impact of timely F&F funds on total raised amounts, employing offline and online policy strategies. The offline method aims at maximizing expected investment, while the online uses Markov Decision Processes (MDPs) to improve success probability.