Information and default in consumer credit markets: Evidence from a natural experiment

Sarah Miller proposed a research which provides such evidence by exploiting an unanticipated change in the amount of information visible in Prosper.com for loans to measure the impact of lender information on loan outcomes. The main finding is that accessing more information of borrowers improved the screening performed by exsisting lenders and attracted new lenders who were better at screening loan applicants and earned higher returns.

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