Do Social Networks Solve Information Problems for Peer-to-Peer Lending? Evidence from Prosper.Com

By Seth Freedman, G. Jin. 2008

220 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management Information Systems, Marketing

View Paper: https://www.semanticscholar.org/paper/685d47561b65626a493953e777449727bb146fa8

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Eunkyoung Lee
2. Peng Liu
3. Stephan Siegel
4. Byungtae Lee
5. Erzo F. P. Luttmer
6. Asim Ijaz Khwaja
7. Kelly Shue
8. Rajkamal Iyer

In Management Information Systems

1. Peng Liu
2. Juanjuan Zhang
3. Adair Morse
4. Huan Tang
5. Nataliya Barasinska
6. Dorothea Schäfer

In Marketing

1. Stephan Siegel
2. Juanjuan Zhang
3. Adair Morse
4. Nataliya Barasinska
5. Dorothea Schäfer

Citations in the corpus

• Emergence of Financial Intermediaries in Electronic Markets: The Case of Online P2P Lending (2009, unknown): “There are two papers that specifically examine the role of groups on the P2P lending website Prosper.com: Freedman and Jin (2008) use transaction data from 2006- 01-06 until 2008-07-31 covering around 290,000 loan listings and 25,000 funded loans.”
• Rational Herding in Microloan Markets (2012, background): “Another stream of research examines the social network effects of Prosper, such as how friend endorsements affect loan performance (Freedman and Jin 2008), how borrowers' group affiliations relate to loan default risk (Everett 2010), how the strength and verifiability of relational network measures…”
• Some Simple Economics of Crowdfunding (2014, unknown): “Many online marketplaces provide users a mechanism for submitting feedback that contributes to building a reputation for individual buyers and sellers. The most basic versions of these mechanisms simply report sales information. Tucker and Zhang (2011) demonstrate that reporting sales information ha”
• Screening in New Credit Markets:Can Individual Lenders Infer Borrower Creditworthiness in Peer-to-Peer Lending? (2009, background): “One may therefore expect that Prosper disproportionally attracts listings by individuals with credit scores in the lower ranges of each category, and Freedman and Jin (2008) present evidence consistent with such adverse selection.”
• Herding behavior in online P2P lending: An empirical investigation (2012, background): “Freedman and Jin (2008) also suggested that social networks on P2P lending sites help alleviate information problems, but also found evidence against this argument.”
• Trust and Credit: The Role of Appearance in Peer-to-peer Lending (2012, result): “For a good overview of these changes, see Freedman and Jin (2008). We have verified that our results are robust to the inclusion of time fixed effects.”