Related Experiment Video
Updated: Oct 14, 2025

A Computerized Functional Skills Assessment and Training Program Targeting Technology Based Everyday Functional Skills
Published on: February 13, 2020
Examining failure learning in online lending: Complete failure vs. incomplete failure
Ji-Wen Li1, Qinghui Cui2, Jia-Jia Zhang3
1School of Management, Jilin University, Changchun, P. R. China.
Abstract:
We examine the learning effects of borrowers' failures in online lending. Based on funding ratios of borrowers' loan listings in online lending, we first explore the role of failure degree in borrowers' future funding performance. Further, we disaggregate borrowers' funding failure into complete failure and incomplete failure, and compare theirs learning effects. Using a large sample of 610,000 online loan applications over six years from a Chinese leading online lending platform Renrendai, we use funding ratio to quantifiably measure each loan listing's failure degree and conduct a series of tests. The results show that: (1) Borrowers' failure degree of prior loan applications is negatively associated with one's subsequent funding performance. (2) Borrowers' complete failure cannot promote learning, while incomplete failure is good for future performance. (3) Both incomplete failure and complete failure interacted to influence the value of each type of experience and generate improved learning. Our results are robust across a variety of settings. The study sheds light for deeply understanding of failure learning phenomenon, and can also provide important implications for online lending managers to support successful financial transactions.
Related Concept Videos
Theory of Attribution II: Kelley's Covariation Theory
Survival Tree
Building a Survival Tree
Constructing a...
Avoidance Learning and Learned Helplessness
Avoidance learning occurs when an organism learns that a specific behavior can prevent an unpleasant outcome. For example, a student who receives a bad grade may start studying harder to avoid future poor grades. This behavior persists even when the negative outcome is no longer present. Avoidance learning is powerful because it maintains behavior in the absence of the...
Truncation in Survival Analysis
Left truncation occurs when individuals who experienced the event of interest before a certain time are not included in the study. This is often due to a "delayed entry" into the study where only those who survive until a certain entry point are...
Censoring Survival Data
Hindsight Biases

