Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform

Donation-based crowdfunding platform Kiva seems to hold the promise of peer-to-peer lending with zero interest rate to help the poor. However, it is actually intermediated by microfinance institutions, which raise funds from Kiva lenders, disburse the funds to borrowers and collect high interest. La...

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Main Authors: GE, Ling, Zhiling GUO, LUO, Xuechen
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2016
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Online Access:https://ink.library.smu.edu.sg/sis_research/3428
https://ink.library.smu.edu.sg/context/sis_research/article/4429/viewcontent/IntermediariesvsPeer_to_Peer.pdf
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spelling sg-smu-ink.sis_research-44292018-03-16T00:38:13Z Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform GE, Ling Zhiling GUO, LUO, Xuechen Donation-based crowdfunding platform Kiva seems to hold the promise of peer-to-peer lending with zero interest rate to help the poor. However, it is actually intermediated by microfinance institutions, which raise funds from Kiva lenders, disburse the funds to borrowers and collect high interest. Later Kiva launched another platform Kiva Zip that implements interest-free loans directly from lenders to borrowers. This unique setup enables us to examine how lenders choose between Kiva and Kiva Zip, i.e. a platform with intermediaries and a real P2P platform. We develop a theoretical model and explicate that the lenders trade-off is between the sustainability of her donation money and the welfare of individual borrowers. We also provide initial empirical evidence that only highly altruistic lenders select Zip and they tend to shift their loans from Kiva to Zip after Zip’s introduction. 2016-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/3428 https://ink.library.smu.edu.sg/context/sis_research/article/4429/viewcontent/IntermediariesvsPeer_to_Peer.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Crowdfunding Intermediaries Kiva Peer-to-Peer Lenders’ Incentive Computer Sciences Databases and Information Systems
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Crowdfunding
Intermediaries
Kiva
Peer-to-Peer
Lenders’ Incentive
Computer Sciences
Databases and Information Systems
spellingShingle Crowdfunding
Intermediaries
Kiva
Peer-to-Peer
Lenders’ Incentive
Computer Sciences
Databases and Information Systems
GE, Ling
Zhiling GUO,
LUO, Xuechen
Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
description Donation-based crowdfunding platform Kiva seems to hold the promise of peer-to-peer lending with zero interest rate to help the poor. However, it is actually intermediated by microfinance institutions, which raise funds from Kiva lenders, disburse the funds to borrowers and collect high interest. Later Kiva launched another platform Kiva Zip that implements interest-free loans directly from lenders to borrowers. This unique setup enables us to examine how lenders choose between Kiva and Kiva Zip, i.e. a platform with intermediaries and a real P2P platform. We develop a theoretical model and explicate that the lenders trade-off is between the sustainability of her donation money and the welfare of individual borrowers. We also provide initial empirical evidence that only highly altruistic lenders select Zip and they tend to shift their loans from Kiva to Zip after Zip’s introduction.
format text
author GE, Ling
Zhiling GUO,
LUO, Xuechen
author_facet GE, Ling
Zhiling GUO,
LUO, Xuechen
author_sort GE, Ling
title Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
title_short Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
title_full Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
title_fullStr Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
title_full_unstemmed Intermediaries vs Peer-to-Peer: A Study of Lenders’ Incentive on a Donation-based Crowdfunding Platform
title_sort intermediaries vs peer-to-peer: a study of lenders’ incentive on a donation-based crowdfunding platform
publisher Institutional Knowledge at Singapore Management University
publishDate 2016
url https://ink.library.smu.edu.sg/sis_research/3428
https://ink.library.smu.edu.sg/context/sis_research/article/4429/viewcontent/IntermediariesvsPeer_to_Peer.pdf
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