{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,18]],"date-time":"2026-04-18T03:28:05Z","timestamp":1776482885368,"version":"3.51.2"},"reference-count":39,"publisher":"MIS Quarterly","issue":"1","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2023,3,1]]},"abstract":"<jats:p>The growth of crowdfunding markets that include both expert and nonexpert investors will soon accelerate due to recent changes in Securities Exchange Commission (SEC) regulations. Prior work has suggested that nonexperts (1) may benefit from experts\u2019 participation via mimicking their trades, but (2) will also face a cost, as experts crowding nonexperts out of the best opportunities will ensure that nonexperts will suffer lower returns than experts. Traditional economic theory holds that the crowding effect means that the relative importance of nonexperts in the market will decline over time until they become unimportant. Exploiting a unique period in one crowdfunding market (Prosper.com) that allowed us to directly estimate the net cost of competing with better-informed experts, we found that the net negative effects of expert participation on nonexperts are small. We used simulations to both better understand (1) the market characteristics and crowdfunding platform choices that influence experts\u2019 and nonexperts\u2019 returns, their return gap, and the extent to which nonexperts are better or worse off relative to a market without expert participation, and (2) the factors that may contribute to the small expert\/nonexpert Prosper return gap.<\/jats:p>","DOI":"10.25300\/misq\/2022\/17321","type":"journal-article","created":{"date-parts":[[2023,5,4]],"date-time":"2023-05-04T16:58:03Z","timestamp":1683219483000},"page":"97-126","source":"Crossref","is-referenced-by-count":12,"title":["Experts vs. Nonexperts in Online Crowdfunding Markets"],"prefix":"10.25300","volume":"47","author":[{"given":"Mingfeng","family":"Lin","sequence":"first","affiliation":[{"name":"Scheller College of Business, Georgia Institute of Technology Atlanta, GA U.S.A."}]},{"given":"Richard W.","family":"Sias","sequence":"additional","affiliation":[{"name":"Department of Finance, Eller College of Management, the University of Arizona Tucson, AZ U.S.A."}]},{"given":"Zaiyan","family":"Wei","sequence":"additional","affiliation":[{"name":"Department of Management, Krannert School of Management, Purdue University West Lafayette, IN U.S.A."}]}],"member":"10933","published-online":{"date-parts":[[2023,3,1]]},"reference":[{"issue":"6","key":"2025082212304024600_b1-04_ra_10_25300_misq_2022_17321","doi-asserted-by":"publisher","first-page":"2747","DOI":"10.1111\/0022-1082.00305","article-title":"Information asymmetry, R&D, and insider gains","volume":"55","author":"Aboody","year":"2000","journal-title":"Journal of Finance"},{"issue":"3","key":"2025082212304024600_b2-04_ra_10_25300_misq_2022_17321","doi-asserted-by":"publisher","first-page":"211","DOI":"10.1086\/256940","article-title":"Uncertainty, evolution, and economic theory","volume":"58","author":"Alchian","year":"1950","journal-title":"Journal of Political Economy"},{"key":"2025082212304024600_b3-04_ra_10_25300_misq_2022_17321","unstructured":"Alios, J.\n           (2016). Deck: Marketplace lending using Reg A+. Crowdfundinsider. https:\/\/www.crowdfundinsider.com\/2016\/04\/84388-marketplace-lending-using-reg-a\/. Accessed 01\/30\/2023"},{"key":"2025082212304024600_b4-04_ra_10_25300_misq_2022_17321","unstructured":"Alloway, T., & Massoudi, A. (2014). P2P lenders install investor speed bumps. CNBC Finance. https:\/\/www.cnbc.com\/2014\/02\/10\/p2p-lenders-install-investor-speed-bumps.html"},{"key":"2025082212304024600_b5-04_ra_10_25300_misq_2022_17321","unstructured":"\u00c5stebro, T., Fern\u00e1ndez, M., Lovo, S., & Vulkan, N. (2020). Herding in equity crowdfunding (Working paper, HEC Paris, Universidad de los Andes, and Oxford University). 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Marketplace lending finds a place in institutional portfolios. 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