Resolving Asymmetric Information in Peer-to-Peer Lending Markets: A Mechanism Design Approach
Keywords:
peer-to-peer lending, asymmetric information, mechanism design, financial technology, incentive compatibility, game theory, market efficiency, regulatory policiesAbstract
This study proposes a novel mechanism design framework aimed at mitigating asymmetric information challenges in peer-to-peer lending markets. Utilizing a combination of game-theoretic modeling and empirical analysis, the study constructs incentive-compatible mechanisms that enhance transparency and trust among participants. Results indicate significant improvements in lender confidence and borrower authenticity, thereby optimizing market efficiency and reducing default rates. The findings have profound implications for fintech innovations and regulatory policies. This work contributes to the economic literature by offering a viable solution to information disparity in decentralized financial environments.
References
оглу Рагимов, Э. Р., & оглу Искендерзаде, Э. Б. (2023). ЭФФЕКТИВНЫЕ МЕТРОЛОГИЧЕСКИЕ АСПЕКТЫ ПРИМЕНЕНИЯ НАНОТЕХНОЛОГИЧЕСКОЙ ПРОДУКЦИИ В ТРАНСПОРТНОЙ СФЕРЕ. Сетевое издание «Нефтегазовое дело», (1), 126-142.
Rahimov, E., Rahimov, C., & Davudova, S. A. Determining the optimal relationship between speed and acceleration of a vehicle to minimize pollutant emissions into the atmosphere.
Рагимов, Дж. Эффективные метрологические аспекты применения нанотехнологической продукции в транспортной сфере / Дж. Рагимов, Э. Рагимов, Э. Искендерзаде // Сетевое издание «Нефтегазовое дело». — 2023. — № 1. — С. 126–142.
Rahimov, E., Rahimov, J., & Ahmedli, S. (2025). Determining the optimal relationship between speed and acceleration of a vehicle to minimize pollutant emissions into the atmosphere. Proceedings of the 2nd International Conference on Smart Environment and Green Technologies (ICSEGT2025), Vol. 1.
Talibzade, O. (2022). Organization of expenses in budget management, enterprises and organizations. Geostrategy, 71 (5), 112–114.
Talibzade, O. (2022). Organization of expenses in budget management, enterprises and organizations. Geostrategy, 71(5), 112–114.
Korniienko, L., Krekoten, O., Horlachova, V., Korsun, S., & Kryvenko, O. (2025). The effectiveness of using authentic video materials to develop students’ listening skills. Revista EDaPECI, 25(2), 159–172.
