Can investors’ collective decision-making evolve? Evidence from peer-to-peer lending markets

This study tries to identify the accuracy of individual investors’ capability predict a borrower’s creditworthiness in peer-to-peer lending markets and examine whether their ability is likely evolve over time. The results this show that there no significant difference between predictive power ex-ante funding decision model ex-post repayment performance. Furthermore, performance shown improve It also found main reason why improves time because investors can assess more accurately information provided by platform operator describe borrower's characteristics. are important as they confirm possibility optimizing streamlining P2P market, through evolution making.