Social influence and defaults in peer-topeer lendingnetworks

Yong Lu, Bin Gu, Qiang Ye, Zhexiang Sheng

Research output: Chapter in Book/Report/Conference proceedingConference contribution

9 Citations (Scopus)

Abstract

We assess social influence on borrowers' default decisions in a peer-to-peer lending market. Our analysis suggests that online borrowers are significantly influenced by defaults in their social networks. A friend's default decision more than doubles a user's default rate. We also find that not all friends have equal influences. The social influence is highly significant among online friends made through the peer-to-peer lending site. Social influence is much weaker in magnitude among offline friendships that were carried over to the peer-to-peer lending site.

Original languageEnglish (US)
Title of host publicationInternational Conference on Information Systems, ICIS 2012
Pages1797-1813
Number of pages17
Volume2
StatePublished - 2012
EventInternational Conference on Information Systems, ICIS 2012 - Orlando, FL, United States
Duration: Dec 16 2012Dec 19 2012

Other

OtherInternational Conference on Information Systems, ICIS 2012
CountryUnited States
CityOrlando, FL
Period12/16/1212/19/12

Fingerprint

Social Influence
lending
Peer to Peer
friendship
social network
Social Networks
market
Social influence
Lending
Peer to peer
Peers

Keywords

  • Empirical analysis
  • Peer-to-peer lending
  • Social influence

ASJC Scopus subject areas

  • Computer Science Applications
  • Statistics, Probability and Uncertainty
  • Applied Mathematics
  • Library and Information Sciences

Cite this

Lu, Y., Gu, B., Ye, Q., & Sheng, Z. (2012). Social influence and defaults in peer-topeer lendingnetworks. In International Conference on Information Systems, ICIS 2012 (Vol. 2, pp. 1797-1813)

Social influence and defaults in peer-topeer lendingnetworks. / Lu, Yong; Gu, Bin; Ye, Qiang; Sheng, Zhexiang.

International Conference on Information Systems, ICIS 2012. Vol. 2 2012. p. 1797-1813.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Lu, Y, Gu, B, Ye, Q & Sheng, Z 2012, Social influence and defaults in peer-topeer lendingnetworks. in International Conference on Information Systems, ICIS 2012. vol. 2, pp. 1797-1813, International Conference on Information Systems, ICIS 2012, Orlando, FL, United States, 12/16/12.
Lu Y, Gu B, Ye Q, Sheng Z. Social influence and defaults in peer-topeer lendingnetworks. In International Conference on Information Systems, ICIS 2012. Vol. 2. 2012. p. 1797-1813
Lu, Yong ; Gu, Bin ; Ye, Qiang ; Sheng, Zhexiang. / Social influence and defaults in peer-topeer lendingnetworks. International Conference on Information Systems, ICIS 2012. Vol. 2 2012. pp. 1797-1813
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