Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending

By Mingfeng Lin, Nagpurnanand R. Prabhala, S. Viswanathan. Management Sciences, 2013

1,214 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/84aeed68821ee274d3e6107452937f67a9c681fb

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Citations in the corpus

In crowdfunding we trust: A trust-building model in lending crowdfunding (2020, background): “…asymmetry and signaling in crowdfunding has confirmed that social capital and others’ early contribution play a significant role in crowdfunders’ decision-making because they reduce uncertainties and perceived information asymmetries (Herzenstein, Dholakia, & Andrews, 2011; Lin et al., 2013).”
Cultural Differences and Geography as Determinants of Online Prosocial Lending (2014, background): “Other recent work that is highly relevant to the present study is that which has looked at loanbased (Lin et al. 2013; Lin and Viswanathan 2013), donation-based (Burtch et al.”
Fintech and banking: What do we know? (2019, neutral): “See Pope and Snydor (2011), Lin et al. (2013), and Morse (2015).”
Digital Finance and FinTech: current research and future research directions (2017, neutral): “The seven papers that were mostly referred to by the other publications of this category are: Agrawal et al. (2015), Ahlers et al. (2015), Belleﬂamme et al. (2014), Burtch et al. (2013a), Lin et al. (2013), Mollick (2014), and Zheng et al. (2014).”
Crowdfunding: Motives, Definitions, Typology and Ethical Challenges (2016, background): “Sharing of inside information and an exchange of insights with external agenciest leads to information asymmetry (Lin, Prabhala, and Viswanathan 2013).”
Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending (2015, background): “This result also suggests that besides the loan applicants’ social ties and friendship as reported by Freedman and Jin (2014) and Lin et al. (2013), the four factors discussed above are also important in explaining the default risk.”
Law, Trust, and the Development of Crowdfunding (2019, neutral): “For example, Michels (2012), Zhang, and Liu (2012), Lin, Prabhala, and Viswanathan (2013), and Iyer, Khwaja, Luttmer, and Shue (2016), all use data from Prosper.com, a large peer-to-peer (P2P) lending website in the United States (US), while Li and Martin (2016), Mollick and Nanda (2016), and…”
Herding behavior in online P2P lending: An empirical investigation (2012, background): “networks between individuals mitigate adverse selection and lead to better outcomes in all aspects of the lending process (Lin et al. 2011).”
Crowdfunding and social capital: A systematic review using a dynamic perspective (2021, background): “Measuring social networks by online friendship hierarchy, as Lin et al. (2013) found on Prosper, suggest that a higher number of borrowers ’ friends, especially the ‘lender-friends ’ (i.e. friends who have a lending history) and real friends who bid online, increases funding probability and reduces…”
The economics of crowdfunding platforms (2015, neutral): “42 As mentioned in Section 3.4.4, Lin, Prabhala, and Viswanathan (2013) investigate the role of fundraisers' friends for the lending outcome on a lending-based CFP.”
Dynamics of Lending-Based Prosocial Crowdfunding: Using a Social Responsibility Lens (2018, background): “Research is particularly sparse regarding prosocial platforms (e.g. Allison et al. 2013; Allison et al. 2015; Burtch et al. 2014) and online peer-to-peer (P2P) lending sites (Iyer et al. 2015; Lin et al. 2013).”
The roles of alternative data and machine learning in fintech lending: Evidence from the LendingClub consumer platform (2019, background): “Lin, Prabhala, and Viswanathan (2013) find that the credit quality of one’s friends is related to improved success in fundraising, lower interest rates, and a lower default rate.”
The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders (2018, background): “Previous research suggest positive effects of peer feedback on the decision to invest or lend (Lin et al. 2012; Jøsang et al. 2007).”