| This paper studied lenders' behavior in the on-line peer-to-peer(P2P)lending market.The on-line P2 P lending market is booming in recent 10 years and become a very efficient way to get private loans.It is also a complement of the financing modes from traditional financial organizations in financial channels.It is attracting an increasing number of private lenders to invest in this market.However,the biggest disadvantage of the on-line P2 P lending market is decision difficulty due to information asymmetry.Borrowers hide or fabricate information with lower cost on this on-line platform.Simultaneously,the participants' average education level and ability of risk control is gradually decrease when more and more people participate.Therefore,herd effect tends to occur in the market.The study aimed to deeply analyze the effect of the historical information of investment projects on investors' behavior based on others' study on herd behavior for the investment and bidding number.Public data from a famous P2 P on-line lending platform,Prosper.com is used.The investment intensity of every investment project can be calculated according to historical bidding information.It is found that the investors tend to invest in projects with higher intensity.The investment intensity decreases with the increase of the volume of investment.And the impact on investors declines with the increase of total investment.This paper used Cox proportional hazards regression model to test the rationality of herd behavior based on investment intensity.It is concluded that herd behavior is rational only in some specific conditions. |
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