Incentive and Coordination in the Two-Sided Market: Evidence from the P2P Lending Market
Two-sided markets serve as information intermediaries by connecting participants on both sides. In this study, we focus on the coordination of participants in the P2P lending market using a coupon strategy as an incentive to attract investment. Using a two-sided market model, we find that when a pla...
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| Main Authors: | , |
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| Format: | article |
| Language: | EN |
| Published: |
Hindawi Limited
2021
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| Subjects: | |
| Online Access: | https://doaj.org/article/14f1483d94ec40e0840c4f1fa7798f05 |
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| Summary: | Two-sided markets serve as information intermediaries by connecting participants on both sides. In this study, we focus on the coordination of participants in the P2P lending market using a coupon strategy as an incentive to attract investment. Using a two-sided market model, we find that when a platform adopts the coupon strategy, (i) the platform utility and participants’ utility are both greater and (ii) the number of participants is greater. In addition, as most research on two-sided markets and coupon strategy focuses on theoretical models, our study provides empirical support using data from Renrendai.com over 2018 to 2019. |
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