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Understanding bank-run contagion

Listed author(s):
  • Brown, Martin
  • Trautmann, Stefan T.
  • Vlahu, Razvan

We study experimental coordination games to examine through which transmission channels, and under which information conditions, a panic-based depositor-run at one bank may trigger a panic-based depositor-run at another bank. We find that withdrawals at one bank trigger withdrawals at another bank by increasing players JEL Classification: D81, G21, G28

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File URL: https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1711.pdf
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Paper provided by European Central Bank in its series Working Paper Series with number 1711.

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Date of creation: Aug 2014
Handle: RePEc:ecb:ecbwps:20141711
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