Prosper is a peer-to-peer lending marketplace currently with over $7 billion in funded loans. Loans are requested by borrowers and investors can choose to fund the loan requests. Prosper acts as the middle man in the loan process by servicing the loan and distributing payments and interest back to the investors.
Initially Prosper loan rates were determined by starting high and lowering the rate until it was accepted. However in 2010, this changed to a fixed rate where Prosper determines what the rate would be. This change in operation can be clearly seen from their publicly available data. My analysis will delve into some effects that this change may have had within Prosper.
The data that I used can be found here and the variable dictionary can be found here