Strategic Herding Behavior in Peer-to-Peer Loan Auctions

  title={Strategic Herding Behavior in Peer-to-Peer Loan Auctions},
  author={Michal Herzenstein and U. Dholakia and R. Andrews},
  journal={Journal of Interactive Marketing},
  • Michal Herzenstein, U. Dholakia, R. Andrews
  • Published 2011
  • Business
  • Journal of Interactive Marketing
  • Online Peer-to-Peer (P2P) loan auctions enable individual consumers to borrow and lend money directly to one another. We study herding behavior, defined as a greater likelihood of bidding in auctions with more existing bids, in P2P loan auctions on The results of an empirical study provide evidence of strategic herding behavior by lenders such that they have a greater likelihood of bidding on an auction with more bids (a 1% increase in the number of bids increases the likelihood of… CONTINUE READING
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