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Results suggest that peer enforcement can have large effects on individuals repayment behavior, while peer selection may only be partly effective at generating information that banks can use to catch 21 game show full episodes make lending decisions.
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The enforcement effect, generated by the incentives that referrers faced after loan approval, significantly improved referees loan performance by reducing late repayment, increasing the likelihood that the loan was repaid in full at maturity, lowering the proportion of the principal still owed at maturity, and.
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However, incentives for peer screening did not significantly improve repayment rates, suggesting that, relative to lenders, peers did not necessarily have better information about the creditworthiness of people in their network.
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