Emergence of Financial Intermediaries in Electronic Markets: The Case of Online P2P Lending

We analyze the role of intermediaries in electronic markets using detailed data of more than 14,000 originated loans on an electronic P2P (peer-to-peer) lending platform. In such an electronic credit market, lenders bid to supply a private loan. Screening of potential borrowers and the monitoring of loan repayment can be delegated to designated group leaders. We find that these market participants act as financial intermediaries and significantly improve borrowers' credit conditions by reducing information asymmetries, predominantly for borrowers with less attractive risk characteristics. Our findings may be surprising given the replacement of a bank by an electronic marketplace.

The Social Dynamics of Communal Violence in India

Contrasting strands of explanation of the motives underlying collective action, as either culturally determined, as an attempt at compensation, point towards an understanding of identity politics as a reaction to given conditions. They pay little attention to the social dynamics that evolve in relation to the conflict within a group, and the possible motivation that can ensue from these. This article analyses the mobilisation among Hindu-nationalist organisations. Rather than seeking their attraction in their discursive outputs and the possible answers they might give in times of change, the contention is that they are to be sought in the specific internal dynamics and the possibilities they create within their historical context. These specific opportunities for action are inherent firstly in the mode of operation relying on participation and involvement, on their direct intervention, their localness and accessibility. Moreover, the dichotomisation inherent in violence makes possible the integration of different interests and different discontents under one banner and therefore contributes to the project of unification undertaken by Hindu-nationalism.