Title :
Do Lenders Make Optimal Decisions in a Peer-to-Peer Network?
Author :
Krumme, Katherine ; Herrero-Lopez, Sergio
Abstract :
We examine the behavior of lenders in a large peer-to-peer lending network and find that, while there exists high variance in risk-taking between individuals, many transactions represent sub-optimal decisions on the part of lenders. Additionally, some borrowers remain underserved by failing to adjust requested rates and loan amounts. We discuss implications and suggest avenues for improvement.
Keywords :
Banking; Conferences; Economic indicators; Intelligent agent; Intelligent networks; Laboratories; Peer to peer computing; Social implications of technology; Social network services; USA Councils; Social network; marketplace; peer-to-peer lending;
Conference_Titel :
Web Intelligence and Intelligent Agent Technologies, 2009. WI-IAT '09. IEEE/WIC/ACM International Joint Conferences on
Conference_Location :
Milan, Italy
Print_ISBN :
978-0-7695-3801-3
Electronic_ISBN :
978-1-4244-5331-3
DOI :
10.1109/WI-IAT.2009.24
