Search and herding effects in peer-to-peer lending: evidence from prosper.com

Abstract

Peer-to-peer lending, Private and public information, D45, D53, D82, D83,

Survival or die: a survival analysis on peer‐to‐peer lending platforms in China

“…() find that borrowers’ attractiveness modulates lenders’ risk perceptions in P2P lending because lenders are more tolerant when attractive borrowers default and because attractive females may convey more trustworthy impressions according to the theory of perceived risk. Herd behaviour as a significant mode of human behaviour has been documented in online P2P lending (Berkovich, ; Liu et al ., ). For example, Herzenstein et al .…”

Which Updates During an Equity Crowdfunding Campaign Increase Crowd Participation?

“…Thus far, this literature has not taken a dynamic perspective and has overlooked the actions and behavior of start-ups during equity crowdfunding campaigns. Most research has examined how particular static characteristics of start-ups, such as details about the entrepreneurial team (Ahlers et al, 2015;Berkovich, 2011;Duarte et al, 2012) or the location of the start-up (Agrawal et al, 2015), and characteristics of the crowdfunding campaign, such as the product video, the quality of the information provided and the existence of financial projections (Ahlers et al, 2015), determine crowdfunding or equity crowdfunding success.…”

Guiding the Herd: The Effect of Reference Groups in Crowdfunding Decision Making

“…That is, when funders lack the resources to decide on their own if a particular project is worth investing and, at the same time, the project initiator is not only trustworthy but also capable of finishing this project, they follow the crowd's decision. Several studies have found support for this herd behavior [9][12] [36] [44]. However, further evidence shows that this herd behavior leads to negative externalities in the form of suboptimal decisions [16] [56].…”