Herding behaviour in peer-to-peer lending: the elaboration likelihood during the COVID-19 crisis

Wafa Bouaynaya () and Jacques-Marie Vaslin
Additional contact information
Wafa Bouaynaya: LEFMI - Laboratoire d’Économie, Finance, Management et Innovation - UR UPJV 4286 - UPJV - Université de Picardie Jules Verne
Jacques-Marie Vaslin: LEFMI - Laboratoire d’Économie, Finance, Management et Innovation - UR UPJV 4286 - UPJV - Université de Picardie Jules Verne

Post-Print from HAL

Abstract: North American consumers can usually act as borrowers or lenders using peer-to-peer (P2P) lending platforms to assess creditworthiness and mitigate information asymmetries on their own. However, as in many sectors, the COVID-19 crisis has also affected the finance industry. Overall, consumer decision-making on P2P lending platforms has changed dramatically resulting in a decrease in the number of transactions. P2P lending platforms can exploit people's behavioural biases associated with hype whereas mediated information about COVID-19 crisis is beyond the control of these platforms. This research work aims at providing greater knowledge on how consumers build their decision-making under fuzzy information environment. A two-way ANOVA enables to strengthen this approach with data collected from a P2P lending platform between January 2019 and December 2020. This paper demonstrates that the elaboration likelihood model is a strong framework to explain consumer herding behaviour on online lending platforms.

Keywords: P2P lending platform; elaboration likelihood model; herding behaviour; COVID-19 crisis (search for similar items in EconPapers)
Date: 2023-06-14
References: Add references at CitEc
Citations:

Published in Journal of Decision Systems, 2023, pp.1-12. ⟨10.1080/12460125.2023.2215083⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04512869

DOI: 10.1080/12460125.2023.2215083

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().