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We analyze how the ratification of the prominent Every Student Succeeds Act (ESSA) impacted giving behavior on a leading education crowdfunding platform and find two contrasting donor tendencies. Although donors contributed more to local initiatives following the ratification, they contributed less to nonlocal initiatives, leading to a substantial net decline in the funds raised. These effects manifest through two mechanisms: information push and information pull. This hyper-localization exacerbates the resource-divide problem in education; schools with students of lower socioeconomic status experienced a sharper decline in the proportion of projects funded. This finding suggests the usefulness of timed and targeted nudges by platform managers, especially around the announcement of major external events. If matching processes are designed carefully, online platforms can mitigate, at least to some extent, the consequences of education inequity.<\/jats:p>","DOI":"10.1287\/isre.2022.0536","type":"journal-article","created":{"date-parts":[[2025,1,31]],"date-time":"2025-01-31T10:31:04Z","timestamp":1738319464000},"page":"2309-2326","source":"Crossref","is-referenced-by-count":8,"title":["When Top-Down Meets Bottom-Up: Legislative Signals and Online Crowdfunding"],"prefix":"10.1287","volume":"36","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-5348-4932","authenticated-orcid":false,"given":"Anqi","family":"Wu","sequence":"first","affiliation":[{"name":"Department of Information Systems and Business Analytics, Florida International University, Miami, Florida 33199"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-0804-4836","authenticated-orcid":false,"given":"Aravinda","family":"Garimella","sequence":"additional","affiliation":[{"name":"Business Administration, University of Illinois Urbana-Champaign, Champaign, Illinois 61820"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-1938-3745","authenticated-orcid":false,"given":"Ramanath","family":"Subramanyam","sequence":"additional","affiliation":[{"name":"Business Administration, University of Illinois Urbana-Champaign, Champaign, Illinois 61820"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1111\/etap.12157"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.2307\/2234133"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.21236\/AD0768446"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.2307\/1602446"},{"key":"B5","volume-title":"Educational Inequality and School Finance: Why Money Matters for America\u2019s Students","author":"Baker BD","year":"2021"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1177\/0899764010380927"},{"issue":"4","key":"B7","first-page":"583","volume":"40","author":"Buchanan JM","year":"1950","journal-title":"Amer. 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