Author(s)

Yunfu Huo and Mingren Ding

Corresponding Author

Mingren Ding

Abstract

This paper constructs a Hotelling model with uniform distribution of consumers between P2P network lending platform and commercial bank loan quota positioning cost, and analyses the problem of differentiated competition between the two institutions by positioning different loan quotas. The research shows that the loan risk cost and the unit loan quota cost will affect the enterprise loan quota positioning. With the increase of the loan risk cost, the P2P online lending platform will move the loan quota positioning to the right, and with the increase of the single loan quota cost, the loan quota positioning will move to the left. Commercial banks are the opposite. And the loan quota positioning of commercial banks is always larger than that of P2P online lending platform.

Keywords

P2P Internet lending, Commercial banks, Differential competition