Overcoming Asymmetric Information in the Crowdfunding Market - A Law and Economics Approach

Crowdfunding has gained increasing attention from regulators and policymakers worldwide, yet responses have varied due to its hybrid position between direct and intermediated finance, diverse business models, and limited evidence on market failures that would justify regulatory intervention.

This book provides a comprehensive analysis of how market- and regulatory-based mechanisms of investor protection interact in the crowdfunding sector and proposes a risk-based regulatory framework. It compares financial-return crowdfunding to traditional finance actors, examines how information asymmetry is addressed through voluntary disclosure, issuer signalling, and platform gatekeeping, and explores the economic functions of self-regulatory frameworks adopted by crowdfunding associations in Europe.

The book then turns to the role of law in addressing residual risks and accommodating the re-intermediation roles of platforms. Finally, it presents empirical evidence on the effects of the UK’s bespoke crowdfunding regulation on market outcomes.

This book will appeal to scholars and students in law, economics, and finance, as well as to regulators and policymakers seeking a deeper understanding of crowdfunding markets and their regulation.

List of contents

Chapter 1. Introduction.- Chapter 2. Crowdfunding and 'Disintermediation'.- Chapter 3. Promises and Limitations of Market-Based Mechanisms in Crowdfunding.- Chapter 4. Self-Regulation in European Crowdfunding Markets.- Chapter 5. The Residual Role of the Law: A Normative Approach to Crowdfunding Regulation.- Chapter 6. Does a Bespoke Regulation Matter for Market Outcomes? Evidence from Equity Platforms in the UK.- Chapter 7. Conclusion.

Product details

• Authors: Ana Odorovic, Ana Odorović
• Publisher: Springer International Publishing
• Languages: English, German
• Product format: Hardback
• Release: 03.11.2025
• EAN: 9783032041173
• ISBN: 978-3-032-04117-3
• Illustrations: Approx. 330 p.
• Series: International Law and Economics
• Subjects: Social sciences, law, business > Business > Miscellaneous; Recht, Unternehmensfinanzierung, Crowdfunding, Due Diligence, Corporate Finance, Law and Economics, Equity Crowdfunding, Financial Regulation, Self-Regulation, Financial Economics, Peer-to-Peer Lending, European Economic Law, Finanzenwesen und Finanzindustrie, Economics of Innovation, Information asymmetry, Regulatory Frameworks, Risk Pricing, Voluntary disclosures, Market outcomes, Professional investors, Democratization of capital, Gatekeeping functions