Design of Online Peer-to-Peer Investment Platform Offering Incentive-Compatible Revenue-Sharing Innovation
Abstract/Contents
- Abstract
- Motivated by my 2010 field investigation of the rural credit market in Thailand, which revealed the appalling extent to which low-income entrepreneurial-minded population are underserved by existing capital-providing sources, including formal financial institutions and the microfinance movement, I conducted further exploration of alternative funding models, such as online-social lending organizations, as well as assessment of innovative financial products, in the hope of identifying novel micro-funding model capable of providing better financial inclusion for a group of financially underserved population at the base of the economic pyramid, representing 3 billion of the world’s population. With main characteristics of the potential platform in mind, I design a novel online peer-to-peer social investment platform, offering incentive-compatible revenue-sharing product, which solves many of the problems inherent in the developing world’s credit markets. This financial product exhibits the beneficial features of a quasi-equity financing scheme, while overcoming the implementation challenges that have prevented widespread adoption of quasi-equity financing instruments in MFIs for many decades. The business plan for the platform is illustrated in one main section of this paper, while another section features indepth analysis of the revenue-sharing model and complementary mechanisms used to align Investor-Client incentives and alleviate informational asymmetry problems.
Description
| Type of resource | text |
|---|---|
| Date created | May 2013 |
Creators/Contributors
| Author | Vorapatchaiyanont, Rhampapacht | |
|---|---|---|
| Primary advisor | Jackson, Matthew | |
| Degree granting institution | Stanford University, Department of Economics |
Subjects
| Subject | Stanford Department of Economics |
|---|---|
| Subject | rural credit market |
| Subject | Thailand |
| Genre | Thesis |
Bibliographic information
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Preferred citation
- Preferred Citation
- Vorapatchaiyanont, Rhampapacht. (2013). Design of Online Peer-to-Peer Investment Platform Offering Incentive-Compatible Revenue-Sharing Innovation. Stanford Digital Repository. Available at: https://purl.stanford.edu/cc253wy5702
Collection
Stanford University, Department of Economics, Honors Theses
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