The round number heuristic and entrepreneur crowdfunding performance

Item Type Journal paper
Abstract We document a novel pattern that campaign goal amounts set by entrepreneurs on Kickstarter exhibit clear clustering at round numbers. We propose that the round number heuristic, a tendency to adopt round numbers as cognitive shortcuts when facing complicated and uncertain situations, may explain the clustering pattern and predict campaign outcomes. Based on 162,863 campaigns between 2009 and 2017, we find a negative relation between the use of round goal amounts and the likelihood of campaign success. Our findings suggest that setting a round number goal conveys useful information about entrepreneur quality that could be used by campaign backers or platforms.
Authors Pursiainen, Vesa
Journal or Publication Title Journal of Corporate Finance
Language English
Subjects finance
Refereed Yes
Date 2021
Official URL
Depositing User Prof. PhD Vesa Pursiainen
Date Deposited 06 Dec 2021 14:35
Last Modified 01 Apr 2022 13:12


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Pursiainen, Vesa (2021) The round number heuristic and entrepreneur crowdfunding performance. Journal of Corporate Finance,

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