Experimental bank runs

This chapter on experimental bank runs first covers the different sources of bank runs studiedin the laboratory: fundamental problems, coordination issues, and panic behavior. Then, we assess which individual characteristics (especially risk and loss aversion, gender, and cognitive abilities) shape the willingness to withdraw. We also discuss depositors' behavior when there is more than one bank. The different policies suggested in the literature to prevent bank runs are reviewed as well. Finally, we point out relevant issues that have not been studied yet and deserve further investigation.