Research On Herd Effect In P2P Internet Lending Platform Based On Social Network Perspective

The vigorous development of the Internet,for many industries had a profound impact,changed the way other industries to a certain extent.P2 P Internet lending is a new type of lending industry that emerged in this wave.Its emergence has made up for the shortage of traditional bank lending,which has facilitated many borrowers who are unable or unwilling to borrow from banks.Due to the information asymmetry of P2 P lending and the lack of financial knowledge of investors,the herd effect will inevitably occur in the process of lending.The uncontrollable herding effect will cause great harm to the P2 P lending industry.Understanding the operating mechanism of the herd effect and avoiding the uncontrollable herding effect are crucial to the steady development of the P2 P lending industry.This paper takes the transaction record of Prosper lending platform as the data source,analyzes the influencing factors of herding effect from the perspective of social network,and realizes the further understanding of the operation mechanism of herding effect.In order to verify the existence of the herd effect of P2 P Internet lending platform,this paper designs two methods based on the average bidding time interval and the current bidding rate to verify the existence of the herd effect.The final result shows that there is a negative correlation between the average bid time interval and the completion degree of the loan project,and there is a positive correlation between the current bid amount and the total amount of the previous bid.It shows that the average bidding interval of borrowing projects decreases with the completion of the project,and the current bidding amount will increase with the increase of the total amount of the previous bidding,which proves that the P2 P lending platform has a herd effect.And by drawing on the calculation of the Gini coefficient,explores the degree of herding individual borrowers project.Then,this paper designed a comparative experiment to analyze the degree of herding effect in the two data sets by whether the borrower's friend bids to divide the data set into two parts.It was found that the degree of herd effect in the data submitted by borrower friends was lower than that of the group without the bid of the borrower.Proving that the bid of the borrower's friend would hinder the emergence of the herd effect.Finally,this paper establishes the influence propagation model of the P2 P lending platform based on the bidding information and social information of theborrowing project.Using the Pagerank algorithm to find out the bidding leaders in the investor,by analyzing the influence of the bidding leader on the herd effect,it proves the guiding role of the bidding leader on the herd effect.Based on the bidding information of the bidders,this paper constructs the influence communication network in the platform lending process,and finds out the users who have greater influence in the platform lending bidding process.Analyze the impact of these users on the herd effect,help the management institutions and the platform itself to better understand the mechanism of the herd effect,control the vicious herding effect,and maintain the stable and healthy development of P2 P Internet lending.