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Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Crowdfunding with Enhanced Reputation Monitoring Mechanism (Fame)

Crowdfunding with Enhanced Reputation Monitoring Mechanism (Fame)

Hardcover

Series: de Gruyter Studies in Islamic Economics, Finance and Busines, Book 3

Business GeneralInvesting & Finance

ISBN10: 3110579987
ISBN13: 9783110579987
Publisher: de Gruyter Oldenbourg
Published: Feb 10 2020
Pages: 160
Weight: 1.20
Height: 0.60 Width: 6.80 Depth: 9.60
Language: English

Crowdfunding is increasingly becoming a method of mobilizing project finance ventures, particularly in a sharing economy. Moreover, the element of risk sharing which is found in equity crowdfunding makes up the essence of Islamic finance. However, as with any type of risk-sharing contract, Islamic crowdfunding faces the problem of lack of trust and 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 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.

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