Friendships in online peer-to-peer lending: pipes, prisms, and relational herding

The paper investigates how friendship relationships act as pipes, prisms, and herding signals in a large online peer-to-peer lending site. By analysing decisions of lenders, Liu (2015) found that friends of the borrower, especially close offline friends, act as financial pipes by lending money to the borrower. On the other hand, the prism effect of friends’ endorsements via bidding on a loan negatively affects subsequent bids by third parties. However, when offline friends of a potential lender, especially close friends, place a bid, a relational herding effect occurs as potential lenders are likely to follow their offline friends with a bid.

12 thoughts on “Friendships in online peer-to-peer lending: pipes, prisms, and relational herding”

  1. I not to mention my pals ended up reviewing the excellent helpful tips located on your web site and so immediately I got a horrible suspicion I had not thanked the web site owner for those strategies. Most of the ladies appeared to be certainly stimulated to see them and have in effect certainly been taking pleasure in them. We appreciate you actually being simply accommodating as well as for opting for such wonderful information most people are really wanting to discover. My honest regret for not expressing appreciation to sooner.

  2. I would like to point out my gratitude for your kind-heartedness in support of visitors who require guidance on this one area. Your real commitment to getting the solution all around appears to be exceedingly beneficial and has specifically enabled folks much like me to arrive at their objectives. Your entire interesting guide entails a lot a person like me and much more to my office workers. Thanks a lot; from everyone of us.

  3. I am also commenting to let you understand of the outstanding discovery our child had studying the blog. She figured out several issues, which included what it is like to have an excellent giving spirit to get many others really easily master various tortuous matters. You really did more than my expectations. Thank you for presenting those insightful, healthy, edifying as well as easy tips about this topic to Evelyn.

  4. I in addition to my friends were going through the good key points located on your web site while before long got a horrible feeling I had not thanked the web blog owner for those tips. These boys ended up totally passionate to study them and have now actually been taking advantage of them. Many thanks for really being simply thoughtful as well as for making a choice on this form of terrific ideas most people are really desperate to be aware of. Our own sincere regret for not expressing gratitude to you sooner.

  5. My wife and i have been really satisfied that Michael managed to finish up his studies by way of the precious recommendations he was given using your web pages. It’s not at all simplistic to just possibly be giving out tips which often some others might have been trying to sell. We really fully grasp we have the website owner to give thanks to for that. Most of the explanations you made, the straightforward website menu, the friendships you will help to foster – it’s got everything sensational, and it’s making our son and the family consider that that subject matter is satisfying, and that’s particularly mandatory. Thanks for the whole thing!

Leave a Reply

Your email address will not be published.