Cason, Timothy N.; Gangadharan, Lata; Maitra, Pushkar - Krannert School of Management, Purdue University - 2008
information and inadequate collateral. One common feature of successful credit mechanisms is group-lending, where the loan is … from a laboratory experiment of group lending in the presence of moral hazard and (costly) peer monitoring. We compare peer … loan frequencies and monitoring rates are sometimes modestly greater with group lending. Within group lending, although the …