Do borrowers make homogeneous decisions in online P2P lending market? An empirical study of PPDai in China

In online P2P lending market, borrowers need to make strategic decisions, which will determine they will get the loans or not. In this study, we firstly investigate what and how the decisions made by borrowers influence the auction results. The empirical results display that borrower' decisions, e.g., loan amount, interest rate will determine whether she could successfully fund loan or not, especially loan amount requested by borrowers. Then, it is focus on analyzing the difference of two borrower's critical decisions (loan amount and interest rate) among successful, unsuccessful capable and incapable listings, and find out that borrowers of three types of listings make heterogeneous decisions. Finally, we provide some suggestions to online P2P lending market about borrowers' decisions aid services based on the results, which could be a contribution with the practical implementation of borrower decision support system.