Bubble Economy of online P2P Lending: Information Disclosure and Extrusion Policy
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| Title | Bubble Economy of online P2P Lending: Information Disclosure and Extrusion Policy
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| Author | Zhou Zhenglong, Ma Benjiang and Hu Fengying |
| Organization | School of Business, Central South University;School of Business, Guilin University of Electronic Technology |
| Email | mabenjiang@csu.edu.cn |
| Key Words | I-finance; Information Disclosure; Ponzi Scheme; Evolutionary Stable Strategy; P2P Lending Bubble |
| Abstract | Online P2P lending has produced an important impact on the traditional financial. However, there are some problems, which may show the sign of a bubble economy. Therefore, for the research purpose, this paper analyzes the possible sign of bubble situation on China’s growing P2P lending through data information and Ponzi scheme mode. In proceeding with our research, this paper makes a break-through analysis by using the evolutionary stable strategy (ESS). The results have shown that, bubble economy of online P2P lending is attributable to the unbalance between interest rate for borrowing and for lending. Thus it is necessary to fix the market behavior from the perspective of policy. Further, through the contrastive analysis of the symmetry game and asymmetric game, the evolutionary stable strategy of symmetric game has nothing to do with the selection probability of initial strategy, and the evolutionary stable strategy of asymmetric game is related to the selection probability of initial strategy. |
| Serial Number | WP1041 |
| Time | 2016-03-22 |
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