Journal ArticleDOI
What’s in a Picture? Evidence of Discrimination from Prosper.com
Devin G. Pope,Justin R. Sydnor +1 more
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TLDR
This paper found evidence of significant racial disparities in a new type of credit market known as peer-to-peer lending and showed that despite the higher average interest rates charged to blacks, lenders making such loans earn a lower net return compared to loans made to whites with similar credit profiles because blacks have higher relative default rates.Abstract:
:We find evidence of significant racial disparities in a new type of credit market known as peer-to-peer lending. 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. Despite the higher average interest rates charged to blacks, lenders making such loans earn a lower net return compared to loans made to whites with similar credit profiles because blacks have higher relative default rates. These results provide insight into whether the discrimination we find is taste-based or statistical.read more
Citations
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Journal ArticleDOI
Trust and Credit: The Role of Appearance in Peer-to-peer Lending
TL;DR: This article found that borrowers who appear more trustworthy have higher probabilities of having their loans funded and default less often, while borrowers who appeared more trustworthy had better credit scores and defaulted less often.
Journal ArticleDOI
Rational Herding in Microloan Markets
Juanjuan Zhang,Peng Liu +1 more
TL;DR: A unique panel data set that tracks the funding dynamics of borrower listings on Prosper.com, the largest microloan market in the United States, finds evidence of rational herding among lenders and shows that rational herded beats irrational herding in predicting loan performance.
Journal ArticleDOI
Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending
TL;DR: In this paper, the authors study the online market for peer-to-peer P2P lending, in which individuals bid on unsecured microloans sought by other individual borrowers.
Journal ArticleDOI
Crowdfunding creative ideas: the dynamics of project backers in kickstarter
Venkat Kuppuswamy,Barry L. Bayus +1 more
TL;DR: This article studied the role of social information in the dynamic behavior of project backers and found that additional backer support is negatively related to its past backer support, while the diffusion of responsibility effects diminish as the project funding cycle approaches its closing date.
Journal ArticleDOI
Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment
TL;DR: This paper found that applicants with distinctively African-American names are 16% less likely to be accepted relative to identical hosts with White names on the same platform. But, their results suggest that only a subset of hosts discriminate.
References
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Book ChapterDOI
Regression Models and Life-Tables
TL;DR: The analysis of censored failure times is considered in this paper, where the hazard function is taken to be a function of the explanatory variables and unknown regression coefficients multiplied by an arbitrary and unknown function of time.
Journal ArticleDOI
The central role of the propensity score in observational studies for causal effects
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Regression models and life tables (with discussion
TL;DR: The drum mallets disclosed in this article are adjustable, by the percussion player, as to balance, overall weight, head characteristics and tone production of the mallet, whereby the adjustment can be readily obtained.
Journal ArticleDOI
Constructing a Control Group Using Multivariate Matched Sampling Methods That Incorporate the Propensity Score
TL;DR: This article used multivariate matching methods in an observational study of the effects of prenatal exposure to barbiturates on subsequent psychological development, using the propensity score as a distinct matching variable.
Book
The Economics of Discrimination
TL;DR: The second edition of "The Economics of Discrimination" has been expanded to include three further discussions of the problem and an entirely new introduction which considers contributions made by others in recent years and some of the more important problems remaining as discussed by the authors.