Crowdfunding with Enhanced Reputation Monitoring Mechanism Fame Torabi Omid
Crowdfunding with Enhanced Reputation Monitoring Mechanism Fame Torabi Omid Crowdfunding is increasingly becoming a method of mobilizing project finance ventures, particularly in a sharing economy.…
Specifikacia Crowdfunding with Enhanced Reputation Monitoring Mechanism Fame Torabi Omid
Crowdfunding with Enhanced Reputation Monitoring Mechanism Fame Torabi Omid
Crowdfunding is increasingly becoming a method of mobilizing project finance ventures, particularly in a sharing economy. However, as with any type of risk-sharing contract, Islamic crowdfunding faces the problem of lack of trust and information asymmetry. Moreover, the element of risk sharing which is found in equity crowdfunding makes up the essence of Islamic finance.
The primary objective of the reputation mechanism is to enable more efficient transactions in communities where cooperation is compromised by post-contractual opportunism or information asymmetry. The author employs a game theory approach to Islamic crowdfunding as a means to tackle the issue of information asymmetry through a "reputation mechanism" which is touted as one of the latest means of solving information asymmetry in web-based social networks. The game theory approach in this study involves two different