Herding in a P2P lending market: Rational inference OR irrational trust?

• We examine the relationship between prior cumulative biddings and current biddings in P2P market. • We using hourly panel data and divide lenders' biddings into manual and auto biddings. • Lenders herd when we control for the percentage funded and time-limit effects. • Find evidence support b...
Ausführliche Beschreibung

• We examine the relationship between prior cumulative biddings and current biddings in P2P market. • We using hourly panel data and divide lenders' biddings into manual and auto biddings. • Lenders herd when we control for the percentage funded and time-limit effects. • Find evidence support both rational and irrational herding exist in P2P lending markets. Ausführliche Beschreibung