Strategic Herding Behavior in Peer-to-Peer Loan Auctions

By M. Herzenstein, Utpal M. Dholakia, Rick L. Andrews. 2011

402 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management Information Systems, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/997c22ca76f253ca636ab01c038aba410226deb0

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In Economics and Econometrics

In Management Information Systems

In Management Science and Operations Research

Citations in the corpus

Instance-based credit risk assessment for investment decisions in P2P lending (2016, background): “It has been found that investors are more likely to bid on loans with more existing AC CE PT ED M AN US CR IP T bids (Herzenstein et al., 2011).”
Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending (2015, background): “Herzenstein et al. (2011) find that herding in the loan auction is positively related to its subsequent performance, that is whether borrowers pay the money back on time.”
In crowdfunding we trust: A trust-building model in lending crowdfunding (2020, background): “Finally, with our findings, we contribute to the emerging literature on uncertainty and information asymmetries in crowdfunding (Colombo et al., 2015; Herzenstein et al., 2011; Kuppuswamy & Bayus, 2017).”
Rational Herding in Microloan Markets (2012, background): “Besides the aforementioned studies of Simonsohn and Ariely (2008) and Herzenstein et al. (2011a), Zhang (2010) finds that patients waiting for transplant kidneys are more likely to turn down a kidney after observing other patients' rejection decisions.”
Peer-to-Peer Crowdfunding: Information and the Potential for Disruption in Consumer Lending (2015, neutral): “The evidence comes from Zhang and Liu (2012) and Herzenstein, Dholakia, and Andrews (2011).”
Tell Me a Good Story and I May Lend You My Money: The Role of Narratives in Peer-to-Peer Lending Decisions (2011, neutral): “Most lenders bid the minimum amount ($25) on individual loans to diversify their portfolios (Herzenstein et al., 2011).”
It's never too late: Funding dynamics and self pledges in reward-based crowdfunding (2018, background): “…focused on quality indicators of projects’ communication [Mollick, 2014], dialogue between fundraisers and pledgers [Beaulieu and Sarker, 2013, Kromidha and Robson, 2016, Wang et al., 2018], and project descriptions’ language [Herzenstein et al., 2011b, Frydrych et al., 2016, Gafni et al., 2017].”
Herding behavior in online P2P lending: An empirical investigation (2012, background): “Analysis on herding in the online P2P lending market is in the initial stage.”
Crowdfunding Creative Ideas: The Dynamics of Project Backers in Kickstarter (2015, background): “Other crowdfunding communities such as Prosper and Zopa involve peer-to-peer lending in which it is expected that the original principal is repaid, along with some fixed interest (Herzenstein, et al. 2011; Zhang and Liu 2012).”