Research On Users' Risk Of Automatic Bidding Function Of P2P Platform In China Based On BP Neural Network Model

In Chinese P2P market,automatic bidding has become the largest investment model,but it has two sides.On the one hand,it reduces the time cost and opportunity cost of investorss through intelligent screening while satisfying individual requirements of investors;on the other hand,influnced by defects of the automatic bidding model,irrational behavior of investors,potential defaulters,poor supervision and other factors,investors face investment risks.P2P platform's automatic bidding model has a serious herd effect,as a result investors will imitate other people's decisions,which leads to a small number of similar automatic bidding modes in the market.Further,based on the investor data released by the “PPDAI”,we select the relevant data of automatic bidding investors,and set up a BP neural network model,in order to test out the similar true investment modes by imitating the behaviors of the automatic bidding users.Inputing the data of the breached contracts into the trained mode and compareing the results with non-defaulted contracts that has been completed to determine the validity of the automatic bidding model.The study finds that users of the automatic bidding model have similar degrees of recognition of the two types of projects and they cannot effectively distinguish the pros and cons of the projects.At the same time,although investors are eager for high interest rates and high returns,they require that the financiers have good investment records,academic records,and credits.In general,the automatic bidding mode users have limited rationality and are exposed to high risks.In order to solve this dilemma,measures are proposed from the four aspects,including automatic bidding mode,investors,managers,and supervisors.