IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v34y2023i1p223-252.html
   My bibliography  Save this article

Digital Multisided Platforms and Women’s Health: An Empirical Analysis of Peer-to-Peer Lending and Abortion Rates

Author

Listed:
  • Gorkem Turgut Ozer

    (Paul College of Business and Economics, University of New Hampshire, Durham, New Hampshire 03824)

  • Brad N. Greenwood

    (School of Business, George Mason University, Fairfax, Virginia 22030)

  • Anandasivam Gopal

    (Nanyang Business School, Nanyang Technological University, Singapore 639798)

Abstract

Digital multisided platforms and peer-to-peer marketplaces are increasingly attracting attention from scholars, with a significant amount of work examining their societal implications. Despite such focus, limited work has investigated the social implications of the democratization of capital by peer-to-peer (P2P) lending platforms, particularly within the healthcare sector, where financial constraints can be daunting. In this study, we investigate the effects of P2P lending platforms on local abortion rates, a medical procedure characterized by significant financial barriers and social stigma. Leveraging the entry of the P2P platform LendingClub into different states at different times, and a differences-in-differences approach, we find that the entry of LendingClub is associated with an increase in the rate at which women choose not to carry to term. Further, results indicate the effects vary based on the characteristics of the local area, with stronger effects manifesting in more religious areas and areas with lower levels of education, suggesting that social frictions in the form of stigma and knowledge asymmetries can influence financial need. Theoretical and practical implications are discussed within.

Suggested Citation

  • Gorkem Turgut Ozer & Brad N. Greenwood & Anandasivam Gopal, 2023. "Digital Multisided Platforms and Women’s Health: An Empirical Analysis of Peer-to-Peer Lending and Abortion Rates," Information Systems Research, INFORMS, vol. 34(1), pages 223-252, March.
    • Handle: RePEc:inm:orisre:v:34:y:2023:i:1:p:223-252
    DOI: 10.1287/isre.2022.1126
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.2022.1126
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.2022.1126?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rajkamal Iyer & Asim Ijaz Khwaja & Erzo F. P. Luttmer & Kelly Shue, 2016. "Screening Peers Softly: Inferring the Quality of Small Borrowers," Management Science, INFORMS, vol. 62(6), pages 1554-1577, June.
    2. Peter Younkin & Venkat Kuppuswamy, 2018. "The Colorblind Crowd? Founder Race and Performance in Crowdfunding," Management Science, INFORMS, vol. 64(7), pages 3269-3287, July.
    3. Andrew Beauchamp, 2016. "Abortion Costs, Separation, and Non-marital Childbearing," Journal of Family and Economic Issues, Springer, vol. 37(2), pages 182-196, June.
    4. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    5. Brad N. Greenwood & Ritu Agarwal, 2016. "Matching Platforms and HIV Incidence: An Empirical Investigation of Race, Gender, and Socioeconomic Status," Management Science, INFORMS, vol. 62(8), pages 2281-2303, August.
    6. Zaiyan Wei & Mingfeng Lin, 2017. "Market Mechanisms in Online Peer-to-Peer Lending," Management Science, INFORMS, vol. 63(12), pages 4236-4257, December.
    7. Iacus, Stefano & King, Gary & Porro, Giuseppe, 2009. "cem: Software for Coarsened Exact Matching," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 30(i09).
    8. Geoffrey G. Parker & Marshall W. Van Alstyne, 2005. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science, INFORMS, vol. 51(10), pages 1494-1504, October.
    9. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-143, Summer.
    10. Sarah Miller & Laura R. Wherry & Diana Greene Foster, 2023. "The Economic Consequences of Being Denied an Abortion," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 394-437, February.
    11. John J. Donohue III & Steven D. Levitt, 2001. "The Impact of Legalized Abortion on Crime," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 379-420.
    12. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    13. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    14. Stephan F. Gohmann & Robert L. Ohsfeldt, 1993. "Effects Of Price And Availability On Abortion Demand," Contemporary Economic Policy, Western Economic Association International, vol. 11(4), pages 42-55, October.
    15. Mingfeng Lin & Siva Viswanathan, 2016. "Home Bias in Online Investments: An Empirical Study of an Online Crowdfunding Market," Management Science, INFORMS, vol. 62(5), pages 1393-1414, May.
    16. Erik Brynjolfsson & Michael D. Smith, 2000. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Management Science, INFORMS, vol. 46(4), pages 563-585, April.
    17. Matthew Blackwell & Stefano Iacus & Gary King & Giuseppe Porro, 2009. "cem: Coarsened exact matching in Stata," Stata Journal, StataCorp LP, vol. 9(4), pages 524-546, December.
    18. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    19. Chakravorti Sujit & Roson Roberto, 2006. "Platform Competition in Two-Sided Markets: The Case of Payment Networks," Review of Network Economics, De Gruyter, vol. 5(1), pages 1-25, March.
    20. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    21. Adair Morse, 2015. "Peer-to-Peer Crowdfunding: Information and the Potential for Disruption in Consumer Lending," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 463-482, December.
    22. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    23. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    24. Erik Brynjolfsson & Yu (Jeffrey) Hu & Michael D. Smith, 2003. "Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers," Management Science, INFORMS, vol. 49(11), pages 1580-1596, November.
    25. Gordon Burtch & Anindya Ghose & Sunil Wattal, 2013. "An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets," Information Systems Research, INFORMS, vol. 24(3), pages 499-519, September.
    26. Marianne Bitler & Madeline Zavodny, 2002. "Child Abuse and Abortion Availability," American Economic Review, American Economic Association, vol. 92(2), pages 363-367, May.
    27. Catherine Tucker & Juanjuan Zhang, 2010. "Growing Two-Sided Networks by Advertising the User Base: A Field Experiment," Marketing Science, INFORMS, vol. 29(5), pages 805-814, 09-10.
    28. Gordon Burtch & Seth Carnahan & Brad N. Greenwood, 2018. "Can You Gig It? An Empirical Examination of the Gig Economy and Entrepreneurial Activity," Management Science, INFORMS, vol. 64(12), pages 5497-5520, December.
    29. George A. Akerlof & Janet L. Yellen & Michael L. Katz, 1996. "An Analysis of Out-of-Wedlock Childbearing in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 277-317.
    30. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    31. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    32. Jones, R.K. & Jerman, J., 2017. "Population group abortion rates and lifetime incidence of abortion: United States, 2008–2014," American Journal of Public Health, American Public Health Association, vol. 107(12), pages 1904-1909.
    33. Marshall Medoff, 2008. "The Response of Abortion Demand to Changes in Abortion Costs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(2), pages 329-346, June.
    34. Danaher, Brett & Smith, Michael D., 2014. "Gone in 60 Seconds: The Impact of the Megaupload Shutdown on Movie Sales," International Journal of Industrial Organization, Elsevier, vol. 33(C), pages 1-8.
    35. Zhuoxin Li & Jason A. Duan, 2014. "Dynamic Strategies for Successful Online Crowdfunding," Working Papers 14-09, NET Institute.
    36. Chrysanthos Dellarocas & Charles A. Wood, 2008. "The Sound of Silence in Online Feedback: Estimating Trading Risks in the Presence of Reporting Bias," Management Science, INFORMS, vol. 54(3), pages 460-476, March.
    37. Mingfeng Lin & Nagpurnanand R. Prabhala & Siva Viswanathan, 2013. "Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending," Management Science, INFORMS, vol. 59(1), pages 17-35, August.
    38. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    39. Amelia Haviland & Daniel Nagin, 2005. "Causal inferences with group based trajectory models," Psychometrika, Springer;The Psychometric Society, vol. 70(3), pages 557-578, September.
    40. Adair Morse, 2015. "Peer-to-Peer Crowdfunding: Information and the Potential for Disruption in Consumer Lending," NBER Working Papers 20899, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hongchang Wang & Eric M. Overby, 2022. "How Does Online Lending Influence Bankruptcy Filings?," Management Science, INFORMS, vol. 68(5), pages 3309-3329, May.
    2. Gordon Burtch & Seth Carnahan & Brad N. Greenwood, 2018. "Can You Gig It? An Empirical Examination of the Gig Economy and Entrepreneurial Activity," Management Science, INFORMS, vol. 64(12), pages 5497-5520, December.
    3. Belleflamme, Paul & Omrani, Nessrine & Peitz, Martin, 2015. "The economics of crowdfunding platforms," Information Economics and Policy, Elsevier, vol. 33(C), pages 11-28.
    4. Saul Estrin & Susanna Khavul & Mike Wright, 2022. "Soft and hard information in equity crowdfunding: network effects in the digitalization of entrepreneurial finance," Small Business Economics, Springer, vol. 58(4), pages 1761-1781, April.
    5. Kai Lu & Zaiyan Wei & Tat Y. Chan, 2022. "Information Asymmetry Among Investors and Strategic Bidding in Peer-to-Peer Lending," Information Systems Research, INFORMS, vol. 33(3), pages 824-845, September.
    6. Philipp B. Cornelius & Bilal Gokpinar, 2020. "The Role of Customer Investor Involvement in Crowdfunding Success," Management Science, INFORMS, vol. 66(1), pages 452-472, January.
    7. Jonathan Levin, 2011. "The Economics of Internet Markets," Discussion Papers 10-018, Stanford Institute for Economic Policy Research.
    8. Baojun Jiang & Kinshuk Jerath & Kannan Srinivasan, 2011. "Firm Strategies in the "Mid Tail" of Platform-Based Retailing," Marketing Science, INFORMS, vol. 30(5), pages 757-775, September.
    9. Sunghun Chung & Keongtae Kim & Chul Ho Lee & Wonseok Oh, 2023. "Interdependence between online peer‐to‐peer lending and cryptocurrency markets and its effects on financial inclusion," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1939-1957, June.
    10. Yongwook Paik & Christos A. Makridis, 2023. "The social value of a ridesharing platform: a hedonic pricing approach," Empirical Economics, Springer, vol. 64(5), pages 2125-2150, May.
    11. Tetyana Balyuk, 2023. "FinTech Lending and Bank Credit Access for Consumers," Management Science, INFORMS, vol. 69(1), pages 555-575, January.
    12. Liu, He & Li, Xuerong & Wang, Shouyang, 2021. "A bibliometric analysis of 30 years of platform research: Developing the research agenda for platforms, the associated technologies and social impacts," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    13. Yingxiu Zhao & Sitong Zhou, 2023. "The Impact of Two-Sided Market Platforms on Participants’ Trading Strategies: An Evolutionary Game Analysis," Mathematics, MDPI, vol. 11(8), pages 1-18, April.
    14. Jun Li & Serguei Netessine, 2020. "Higher Market Thickness Reduces Matching Rate in Online Platforms: Evidence from a Quasiexperiment," Management Science, INFORMS, vol. 66(1), pages 271-289, January.
    15. Maggie Rong Hu & Xiaoyang Li & Yang Shi & Xiaoquan (Michael) Zhang, 2023. "Numerological Heuristics and Credit Risk in Peer-to-Peer Lending," Information Systems Research, INFORMS, vol. 34(4), pages 1744-1760, December.
    16. Bollaert, Helen & Lopez-de-Silanes, Florencio & Schwienbacher, Armin, 2021. "Fintech and access to finance," Journal of Corporate Finance, Elsevier, vol. 68(C).
    17. Hongchang Wang & Eric Overby, 2023. "Do Political Differences Inhibit Market Transactions? An Investigation in the Context of Online Lending," Management Science, INFORMS, vol. 69(8), pages 4685-4706, August.
    18. Jiyong Park & Min-Seok Pang & Junetae Kim & Byungtae Lee, 2021. "The Deterrent Effect of Ride-Sharing on Sexual Assault and Investigation of Situational Contingencies," Information Systems Research, INFORMS, vol. 32(2), pages 497-516, June.
    19. Arvind K. Tripathi & Young-Jin Lee & Amit Basu, 2022. "Analyzing the Impact of Public Buyer–Seller Engagement During Online Auctions," Information Systems Research, INFORMS, vol. 33(4), pages 1264-1286, December.
    20. Yingjie Zhang & Beibei Li & Sean Qian, 2023. "Ridesharing and Digital Resilience for Urban Anomalies: Evidence from the New York City Taxi Market," Information Systems Research, INFORMS, vol. 34(4), pages 1775-1790, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:34:y:2023:i:1:p:223-252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.