No abstract

We investigate the network structure of bank lending markets and evaluate the impact of lenders' network centrality, considered a measure of their experience and reputation, on borrowing costs. We show that the French market for syndicated bank loans is a 'small world' characterized by large local density and short social distances between lenders. Such a network structure allows for better information and resources flows between banks thus enhancing their social captial. We then show that lenders' experience and reputation play a significant role in reducing loan spreads and thus increasing borrower's wealth.

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The purpose of this paper is twofold: First we define the concept of Crowdsourcing of Inventive Activities (CIA) and we emphasise its differences with the crowdsourcing of routine activities and the crowdsourcing of content. Then we stress the advantages and limits of CIA by using two complementary theories of the firm: Transaction cost theory and the evolutionary theory of the firm. Specifically, we show that CIA may emerge only if knowledge is sufficiently codified and if a legal protection is possible (e.g. via patents). This work therefore builds theoretical predictions that can be tested in further works. Beyond this analysis, our work underlines issues for the traditional theories of the firm that will have to be clarified: for instance, does the emergence of crowdsourcing lead to rethinking the reasons why firms exist and the definition of their boundaries?