Herzenstein, Michal - 2014
Online Peer-to-Peer (P2P) loan auctions enable individual consumers to borrow and lend money directly to one another …. We study herding behavior, defined as a greater likelihood of bidding in auctions with more existing bids, in P2P loan … auctions on Prosper.com. The results of an empirical study provide evidence of strategic herding behavior by lenders such that …