Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103675
Authors: 
Berger, Sven C.
Gleisner, Fabian
Year of Publication: 
2009
Citation: 
[Journal:] BuR - Business Research [ISSN:] 1866-8658 [Volume:] 2 [Year:] 2009 [Issue:] 1 [Pages:] 39-65
Abstract: 
We analyze the role of intermediaries in electronic markets using detailed data of more than 14,000 originated loans on an electronic P2P (peer-to-peer) lending platform. In such an electronic credit market, lenders bid to supply a private loan. Screening of potential borrowers and the monitoring of loan repayment can be delegated to designated group leaders. We find that these market participants act as financial intermediaries and significantly improve borrowers' credit conditions by reducing information asymmetries, predominantly for borrowers with less attractive risk characteristics. Our findings may be surprising given the replacement of a bank by an electronic marketplace.
Subjects: 
asymmetric information
electronic markets
intermediation
social lending
Persistent Identifier of the first edition: 
Document Type: 
Article

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