Research on the Entry Threshold of P2P Lending Platform Considering the Social Reputation Level of Borrowers

Abstract

According to two situations of establishing the threshold of social reputation of the online lending platform, this paper establishes the profit maximization model of P2P lending platform, analyzing the pricing of P2P lending platform and answering whether and when it is necessary to establish a social reputation threshold for borrowers. Moreover, this paper analyzes the influence of the platform's exclusive strategy on the number of bilateral users and the platform's profit. The results show that the platform needs to set the threshold when lenders are more sensitive to borrowers' social reputation. In addition, through the analysis of market size and platform profit, it is found that when the platform strengthens the sensitivity of lenders to the average social credit level of borrowers, it will increase the number of lenders and the platform's own profit at the same time.