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Journal article

Marketplace lending, information aggregation, and liquidity

Abstract:

Lending marketplaces aimed at directly connecting retail lenders and borrowers retreat from auctions and, instead, set prices and allocate credit on their own, despite evidence that retail investors possess valuable soft and nonstandard information. We investigate this puzzle by analyzing a unique data set of 7,455 auctions and 34 million bids from a leading British peer-to-business platform. We find that the platform was vulnerable to liquidity shocks, resulting in sizable deviations from in...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1093/rfs/hhaa101

Authors


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Institution:
University of Oxford
Division:
SSD
Department:
Saïd Business School
Role:
Author
Publisher:
Oxford University Press Publisher's website
Journal:
Review of Financial Studies Journal website
Volume:
34
Issue:
5
Pages:
2318-2361
Publication date:
2020-09-14
Acceptance date:
2020-04-29
DOI:
EISSN:
1465-7368
ISSN:
0893-9454
Language:
English
Keywords:
Pubs id:
1102514
Local pid:
pubs:1102514
Deposit date:
2020-04-30

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