Addressing Information Asymmetries in Online Peer-to-Peer Lending

Mark Cummins; Theo Lynn; Ciarán Mac an Bhaird; Pierangelo Rosati

doi:10.1007/978-3-030-02330-0_2

Addressing Information Asymmetries in Online Peer-to-Peer Lending

Mark Cummins
, Theo Lynn
, Ciarán Mac an Bhaird
, Pierangelo Rosati

DCU Business School
Dublin City University

Research output: Chapter in Book or Conference Publication/Proceeding › Chapter › peer-review

15 Citations (Scopus)

Abstract

Digital technologies are transforming how small businesses access finance and from whom. This chapter explores online peer-to-peer (P2P) lending, a form of crowdfunding that connects borrowers and lenders. Information asymmetry is a key issue in online peer-to-peer lending marketplaces that can result in moral hazard or adverse selection, and ultimately impact the viability and success of individual platforms. Both online P2P lending platforms and lenders seek to minimise the impact of information asymmetries through a variety of mechanisms. This chapter discusses the structure of online P2P lending platforms and reviews how the disclosure of hard and soft information, and herding can reduce information asymmetries. The chapter concludes with a discussion of further avenues for research.

Original language	English
Title of host publication	Palgrave Studies in Digital Business and Enabling Technologies
Publisher	Palgrave Macmillan
Pages	15-31
Number of pages	17
DOIs	https://doi.org/10.1007/978-3-030-02330-0_2
Publication status	Published - 2019
Externally published	Yes

Publication series

Name	Palgrave Studies in Digital Business and Enabling Technologies
ISSN (Print)	2662-1282
ISSN (Electronic)	2662-1290

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Information asymmetry
Online P2P lending
P2P lending

Access to Document

10.1007/978-3-030-02330-0_2

Cite this

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title = "Addressing Information Asymmetries in Online Peer-to-Peer Lending",

abstract = "Digital technologies are transforming how small businesses access finance and from whom. This chapter explores online peer-to-peer (P2P) lending, a form of crowdfunding that connects borrowers and lenders. Information asymmetry is a key issue in online peer-to-peer lending marketplaces that can result in moral hazard or adverse selection, and ultimately impact the viability and success of individual platforms. Both online P2P lending platforms and lenders seek to minimise the impact of information asymmetries through a variety of mechanisms. This chapter discusses the structure of online P2P lending platforms and reviews how the disclosure of hard and soft information, and herding can reduce information asymmetries. The chapter concludes with a discussion of further avenues for research.",

keywords = "Information asymmetry, Online P2P lending, P2P lending",

author = "Mark Cummins and Theo Lynn and \{Mac an Bhaird\}, Ciar{\'a}n and Pierangelo Rosati",

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doi = "10.1007/978-3-030-02330-0\_2",

language = "English",

series = "Palgrave Studies in Digital Business and Enabling Technologies",

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}

Addressing Information Asymmetries in Online Peer-to-Peer Lending. / Cummins, Mark; Lynn, Theo; Mac an Bhaird, Ciarán et al.
Palgrave Studies in Digital Business and Enabling Technologies. Palgrave Macmillan, 2019. p. 15-31 (Palgrave Studies in Digital Business and Enabling Technologies).

Research output: Chapter in Book or Conference Publication/Proceeding › Chapter › peer-review

TY - CHAP

T1 - Addressing Information Asymmetries in Online Peer-to-Peer Lending

AU - Cummins, Mark

AU - Lynn, Theo

AU - Mac an Bhaird, Ciarán

AU - Rosati, Pierangelo

PY - 2019

Y1 - 2019

N2 - Digital technologies are transforming how small businesses access finance and from whom. This chapter explores online peer-to-peer (P2P) lending, a form of crowdfunding that connects borrowers and lenders. Information asymmetry is a key issue in online peer-to-peer lending marketplaces that can result in moral hazard or adverse selection, and ultimately impact the viability and success of individual platforms. Both online P2P lending platforms and lenders seek to minimise the impact of information asymmetries through a variety of mechanisms. This chapter discusses the structure of online P2P lending platforms and reviews how the disclosure of hard and soft information, and herding can reduce information asymmetries. The chapter concludes with a discussion of further avenues for research.

AB - Digital technologies are transforming how small businesses access finance and from whom. This chapter explores online peer-to-peer (P2P) lending, a form of crowdfunding that connects borrowers and lenders. Information asymmetry is a key issue in online peer-to-peer lending marketplaces that can result in moral hazard or adverse selection, and ultimately impact the viability and success of individual platforms. Both online P2P lending platforms and lenders seek to minimise the impact of information asymmetries through a variety of mechanisms. This chapter discusses the structure of online P2P lending platforms and reviews how the disclosure of hard and soft information, and herding can reduce information asymmetries. The chapter concludes with a discussion of further avenues for research.

KW - Information asymmetry

KW - Online P2P lending

KW - P2P lending

UR - https://www.scopus.com/pages/publications/85145885923

U2 - 10.1007/978-3-030-02330-0_2

DO - 10.1007/978-3-030-02330-0_2

M3 - Chapter

AN - SCOPUS:85145885923

T3 - Palgrave Studies in Digital Business and Enabling Technologies

SP - 15

EP - 31

BT - Palgrave Studies in Digital Business and Enabling Technologies

PB - Palgrave Macmillan

ER -

Addressing Information Asymmetries in Online Peer-to-Peer Lending

Abstract

Publication series

UN SDGs

Keywords

Access to Document

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