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We study how response time in a laboratory experiment on bank runs affects withdrawal decisions. In our setup, the bank … difficulty and optimality of withdrawal decision. We hypothesize that a) the more difficult the decision, the longer the response …
Persistent link: https://www.econbiz.de/10012290256
We assess the impact of cognitive abilities on withdrawal decisions in a bank-run game. In our setup, depositors choose sequentially between withdrawing or keeping their funds deposited in a common bank. They may observe previous decisions depending on the information structure. Theoretically,...
Persistent link: https://www.econbiz.de/10010429136
We report experimental evidence on gender differences in financial decision that involves three depositors choosing …
Persistent link: https://www.econbiz.de/10010251053
We report experimental evidence on the effect of observability of actions on bank runs. We model depositors' decision …
Persistent link: https://www.econbiz.de/10010222336
keep the money deposited: it is more likely that withdrawals are observed. We study how decision-making changes if … depositors are able to make their decision to keep their funds in the bank visible to subsequent depositors at a cost. We show … the no-run outcome the unique equilibrium. We test if the theoretical predicitions hold in a lab experiment. We find that …
Persistent link: https://www.econbiz.de/10011450033
We design a laboratory experiment to test the importance of wealth as a channel for financial contagion across markets … fundamentals, we show that a coordination failure in the first market reduces investors' wealth, which makes them more likely to …
Persistent link: https://www.econbiz.de/10012182689
Response times are a simple low-cost indicator of the process of reasoning in strategic games (Rubinstein, 2007; Rubinstein, 2016). We leverage the dynamic nature of response-time data from repeated strategic interactions to measure the strategic complexity of a situation by how long people think on...
Persistent link: https://www.econbiz.de/10011607565
Response times are a simple low-cost indicator of the process of reasoning in strategic games. In this paper, we leverage the dynamic nature of response-time data from repeated strategic interactions to measure the strategic complexity of a situation by how long people think on average when they...
Persistent link: https://www.econbiz.de/10013191643
We consider a society with informed individuals (adults) and naive individuals (children). Adults are altruistic towards their own children and possess information that allows to better predict the behavior of other adults. Children benefit from adopting behaviors that conform to the social norm...
Persistent link: https://www.econbiz.de/10010224768
Persistent link: https://www.econbiz.de/10011640364