We derive the theoretical result that the existence of a secondary market increases primary market liquidity in the form of lower effective spreads and higher issuance quantities. The same intuition suggests a shorter funding time. Using intraday peer-to-peer issuance data, we find that the...

The dynamics between coexisting experts and non-experts has important implications for online market and platform design. We study their relationship in the context of crowdfunding. While crowdfunding originated as a non-expert market, experts have become active participants. We investigate the...

We document how online lenders exploit a flawed, new pricing mechanism in a peer-to-peer lending platform: Prosper.com. Switching from auctions to a posted-price mechanism in December 2010, Prosper assigned loan listings with different estimated loss rates into seven distinctive rating grades...

We study how investors in peer-to-peer (P2P) lending utilize their information advantage in the decisions of when to place bids. Literature has documented that better-informed bidders may withhold bidding until the last moment (i.e., “sniping”) to avoid competition. We argue that, since...

As cities debate regulations of Airbnb and other home-sharing services, we study the impacts of home sharing on local residential real estate markets. By leveraging a unique quasi-experiment on Airbnb—a platform policy that caps the number of properties a host can manage in a city, we present...