Lending behavior and community structure in an online peer-to-peer economic network
Name
Krumme-2009-Lending behavior and community structure in an online peer-to-peer economic network.pdf
Size
1.26 MB
Format
Adobe PDF
Checksum (MD5)
6f0639a8f0257d2f4727a88fb7b87238
Author(s)
Krumme, Katherine Ann
Herrero Lopez, Sergio
Date Issued
October 2009
Journal
International Conference on Computational Science and Engineering, 2009. CSE '09.
Publisher
Institute of Electrical and Electronics Engineers
Citation
Krumme, K.A., and S. Herrero. “Lending Behavior and Community Structure in an Online Peer-to-Peer Economic Network.” Computational Science and Engineering, 2009. CSE '09. International Conference on. 2009. 613-618. ©2009 Institute of Electrical and Electronics Engineers.
Version
Final published version
Abstract
Increasingly, economic transactions are taking place over social networks. We study the static and dynamic characteristics of a peer-to-peer lending network through 350,000 loan listings and accompanying member profiles from the online marketplace Prosper.com. Our results imply that social factors such as participation in affinity groups and descriptive profile text are correlated with financial indicators; at the same time, we see evidence of suboptimal lending decisions, minimal learning, and herding behavior in the network. We discuss implications and suggest possible improvements to the online peer-to-peer lending model.
Subjects
social networks
economics
MIT Department
Massachusetts Institute of Technology. Department of Civil and Environmental Engineering
Massachusetts Institute of Technology. Media Laboratory
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1109/CSE.2009.185
