What ’ s in a Picture ? Evidence of Discrimination from Prosper . com

@inproceedings{Pope2008WhatS,
  title={What ’ s in a Picture ? Evidence of Discrimination from Prosper . com},
  author={Devin G. Pope and Justin R. Sydnor},
  year={2008}
}
We analyze discrimination in a new type of credit market known as peer-to-peer lending. Specifically, we examine how lenders in this online market respond to signals of characteristics such as race, age, and gender that are conveyed via pictures and text. We find evidence of significant racial disparities; loan listings with blacks in the attached picture are 25 to 35 percent less likely to receive funding than those of whites with similar credit profiles. Conditional on receiving a loan, the… CONTINUE READING