We study how lines form endogenously in front of banks when depositors differ in their liquidity needs. Our model has two stages. In the first one, depositors choose the level of costly effort they want to exert to arrive early at the bank which determines the order of decisions. In the second...

We study how lines form endogenously in front of banks when depositors differ in their liquidity needs. Our model has two stages. In the first one, depositors choose the level of costly effort they want to exert to arrive early at the bank which determines the order of decisions. In the second...

The aim of this paper is to provide a substantiating view on the crises started in 2007 and of which consequences transcended around the world recession. The paper is, essentially, based on a static game theory managing the limits of classic finance theory to provide satisfactory explanations of...