Information Asymmetry Among Investors and Strategic Bidding in Peer-to-Peer Lending

Published Online:https://doi.org/10.1287/isre.2021.1084

References

  • Alyakoob M, Rahman MS, Wei Z (2021) Where you live matters: Local bank competition, online marketplace lending, and disparity in borrower benefits. Inform. Systems Res., epub ahead of print September 27, https://doi.org/10.1287/isre/2021/1043.LinkGoogle Scholar
  • Bajari P, Hortaçsu A (2003) The winner’s curse, reserve prices, and endogenous entry: Empirical insights from eBay auctions. RAND J. Econom. 34(2):329–355.CrossrefGoogle Scholar
  • Bapna R, Goes P, Gupta A (2000) A theoretical and empirical investigation of multi-item on-line auctions. Inform. Tech. Management 1(1-2):1–23.CrossrefGoogle Scholar
  • Bapna R, Goes P, Gupta A (2003) Analysis and design of business-to-consumer online auctions. Management Sci. 49(1):85–101.LinkGoogle Scholar
  • Burtch G, Hong Y, Liu D (2018) The role of provision points in online crowdfunding. J. Management Inform. Systems 35(1):117–144.CrossrefGoogle Scholar
  • Chen N, Ghosh A, Lambert NS (2014) Auctions for social lending: A theoretical analysis. Games Econom. Behav. 86:367–391.CrossrefGoogle Scholar
  • Du X, Su M, Zhang X, Zheng X (2017) Bidding for multiple keywords in sponsored search advertising: Keyword categories and match types. Inform. Systems Res. 28(4):711–722.LinkGoogle Scholar
  • Duan W, Gu B, Whinston AB (2009) Informational cascades and software adoption on the Internet: An empirical investigation. Management Inform. Systems Quart. 33(1):23–48.CrossrefGoogle Scholar
  • Duarte J, Siegel S, Young L (2012) Trust and credit: The role of appearance in peer-to-peer lending. Rev. Financial Stud. 25(8):2455–2484.CrossrefGoogle Scholar
  • Ely JC, Hossain T (2009) Sniping and squatting in auction markets. Amer. Econom. J. Microeconom. 1(2):68–94.CrossrefGoogle Scholar
  • Fast Invest (2017) This is how P2P lending compares to other investment options. Fast Invest (November 17), https://www.fastinvest.com/en/blog/this-is-how-p2p-lending-compares-to-other-investment-options.Google Scholar
  • Freedman S, Jin GZ (2017) The information value of online social networks: Lessons from peer-to-peer lending. Internat. J. Industry Organ. 51:185–222.CrossrefGoogle Scholar
  • Fu R, Huang Y, Singh PV (2021) Crowds, lending, machines, and bias. Inform. Systems Res. 32(1):72–92.LinkGoogle Scholar
  • Galland D (2017) The 4 best P2P lending platforms for investors in 2017—Detailed analysis. Forbes (January 29), https://www.forbes.com/sites/oliviergarret/2017/01/29/the-4-best-p2p-lending-platforms-for-investors-in-2017-detailed-analysis/.Google Scholar
  • Greenwald A, Kannan K, Krishnan R (2010) On evaluating information revelation policies in procurement auctions: A Markov decision process approach. Inform. Systems Res. 21(1):15–36.LinkGoogle Scholar
  • Groenwegen P (2017) Squatting, sniping, and online strategy: Analyzing early and late bidding in eBay auctions. Working paper, Yale University, New Haven, CT.Google Scholar
  • Herzenstein M, Dholakia UM, Andrews RL (2011a) Strategic herding behavior in peer-to-peer loan auctions. J. Interactive Marketing 25(1):27–36.CrossrefGoogle Scholar
  • Herzenstein M, Sonenshein S, Dholakia UM (2011b) Tell me a good story and I may lend you money: The role of narratives in peer-to-peer lending decisions. J. Marketing Res. 48(SPL):S138–S149.CrossrefGoogle Scholar
  • Hildebrand T, Puri M, Rocholl J (2017) Adverse incentives in crowdfunding. Manage. Sci. 63(3):587–608.LinkGoogle Scholar
  • Iyer R, Khwaja AI, Luttmer EFP, Shue K (2016) Screening peers softly: Inferring the quality of small borrowers. Management Sci. 62(6):1554–1577.LinkGoogle Scholar
  • Jiang Y, Ho YC, Yan X, Tan Y (2018) Investor platform choice: Herding, platform attributes, and regulations. J. Management Inform. Systems 35(1):86–116.CrossrefGoogle Scholar
  • Jiang Y, Ho YC, Yan X, Tan Y (2020) When online lending meets real estate: Examining investment decisions in lending-based real estate crowdfunding. Inform. Systems Res. 31(3):715–730.LinkGoogle Scholar
  • Jiang Y, Ho YC, Yan X, Tan Y (2021) What’s in a ‘username’? Examining the effect of perceived anonymity on herding in crowdfunding. Inform. Systems Res., ePub ahead of print, https://doi.org/10.1287/isre.2021.1049.LinkGoogle Scholar
  • Katz ML, Shapiro C (1985) Network externalities, competition, and compatibility. Amer. Econom. Rev. 75(3):424–440.Google Scholar
  • Kawai K, Onishi K, Uetake K (2021) Signaling in online credit markets. Working paper, University of California at Berkeley, Berkeley.Google Scholar
  • Lin M, Viswanathan S (2016) Home bias in online investments: An empirical study of an online crowdfunding market. Management Sci. 62(5):1393–1414.LinkGoogle Scholar
  • Lin M, Prabhala NR, Viswanathan S (2013) Judging borrowers by the company they keep: Friendship networks and information asymmetry in online peer-to-peer lending. Management Sci. 59(1):17–35.LinkGoogle Scholar
  • Lin M, Sias RW, Wei Z (2021) Experts vs. non-experts in online crowdfunding markets. Working paper, Georgia Institute of Technology, Atlanta.Google Scholar
  • Liu D, Chen J, Whinston AB (2010) Ex ante information and the design of keyword auctions. Inform. Systems Res. 21(1):133–153.LinkGoogle Scholar
  • Lu Y, Gupta A, Ketter W, Heck EV (2016) Exploring bidder heterogeneity in multi-channel sequential B2B auctions: Evidence from the Dutch flower auctions. Management Inform. Systems Quart. 40(3):645–662.CrossrefGoogle Scholar
  • Morgan Stanley (2015) Can P2P lending reinvent banking? Morgan Stanley Research (June 17), https://www.morganstanley.com/ideas/p2p-marketplace-lending.Google Scholar
  • Morse A (2015) Peer-to-peer crowdfunding: Information and the potential for disruption in consumer lending. Annu. Rev. Financial Econom. 7:463–482.CrossrefGoogle Scholar
  • Nofsinger JR, Sias RW (1999) Herding and feedback trading by institutional and individual investors. J. Finance 54(6):2263–2295.CrossrefGoogle Scholar
  • Ockenfels A, Roth AE (2006) Late and multiple bidding in second price Internet auctions: Theory and evidence concerning different rules for ending an auction. Games Econom. Behav. 55(2):297–320.CrossrefGoogle Scholar
  • Pope DG, Sydnor JR (2011) What’s in a picture? Evidence of discrimination from Prosper.com. J. Human Resources 46(1):53–92.CrossrefGoogle Scholar
  • Renton P (2011) Prosper groups put the social in social lending. Lend Academy (December 16), https://www.lendacademy.com/prosper-groups-put-the-social-in-social-lending/Google Scholar
  • Roth AE, Ockenfels A (2002) Last-minute bidding and the rules for ending second-price auctions: Evidence from eBay and Amazon auctions on the Internet. Amer. Econom. Rev. 92(4):1093–1103.CrossrefGoogle Scholar
  • Simonsohn U, Ariely D (2008) When rational sellers face nonrational buyers: Evidence from herding on eBay. Management Sci. 54(9):1624–1637.LinkGoogle Scholar
  • Wang H, Overby EM (2021) How does online lending influence bankruptcy filings? Management Sci., ePub ahead of print, https://doi.org/10.1287/mnsc.2021.4045.Google Scholar
  • Wei Z, Lin M (2017) Market mechanisms in online peer-to-peer lending. Management Sci. 63(12):4236–4257.LinkGoogle Scholar
  • Xiao S, Ho Y, Che H (2021) Building the momentum: Information disclosure and herding in online crowdfunding. Production Oper. Management 30(9):3213–3230.CrossrefGoogle Scholar
  • Xin Y (2020) Asymmetric information, reputation, and welfare in online credit markets. Working paper, California Institute of Technology, Pasadena.Google Scholar
  • Zhang X, Feng J (2011) Cyclical bid adjustments in search-engine advertising. Management Sci. 57(9):1703–1719.LinkGoogle Scholar
  • Zhang J, Liu P (2012) Rational herding in microloan markets. Management Sci. 58(5):892–912.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.