In this study we investigated informal transactions amongst Chinese farmers through the lens of social interactions. Along these lines we developed a theoretical model to investigate kindness and the conditions under which a fairness equilibrium in informal credit markets might operate. We use...

Incentive mechanisms are important attributes to financial decision-making. A framed field experiment was conducted to test loan decision behaviors. It showed that lenders' risk-aversion and behavioral responses resulted in credit rationing under certain incentive schemes. In the experiment,...