Kinateder, Markus; Kiss, Hubert Janos - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2012
We study the Diamond-Dybvig model of financial intermediation (JPE, 1983) under theassumption that depositors have information about previous decisions. Depositors decidesequentially whether to withdraw their funds or continue holding them in the bank. If depositorsobserve the history of all...