Accessing Information Asymmetry in Peer-to-Peer Lending by Default Prediction from Investors’ Perspective
نویسندگان
چکیده
منابع مشابه
Performance as a signal to Information Asymmetry Problem in Online Peer-to-Peer Lending
The online peer-to-peer (P2P) lending market, in which it is the practice of making unsecured microloans to other individual borrowers, is becoming more and more popular worldwide. In this market, information asymmetry between lenders and borrowers may create the adverse selection problem -the lenders may fund sub-prime borrowers with high risk of defaulting. In this study, we propose a model t...
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Online Peer-to-Peer lending platforms claim to be beneficial for both borrowers and lenders by eliminating expensive intermediaries and reducing transaction costs. However, are the often inexperienced lenders who operate in a pseudonymous online environment with potentially significant information asymmetries really able to obtain an attractive return on their investment? This paper discusses t...
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I use unique datasets from peer-to-peer lending platforms and a platform entry event to study competition among financial intermediaries. Under competition, the risk-adjusted interest rate decreases for safe borrowers but increases for risky borrowers, and the incumbent platform becomes less prudent in borrower screening, and the corresponding loan performance is aggravated. Competition distort...
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This paper studies peer-to-peer (p2p) lending on the Internet. Prosper.com, the first p2p lending website in the US, matches individual lenders and borrowers for unsecured consumer loans. Using transaction data from June 1, 2006 to July 31, 2008, we examine what information problems exist on Prosper and whether social networks help alleviate the information problems. As we expect, data identifi...
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ژورنال
عنوان ژورنال: Symmetry
سال: 2020
ISSN: 2073-8994
DOI: 10.3390/sym12060935