Do Women Panic More than Men? An Experimental Study on Financial Decision
25 Pages Posted: 12 Jan 2014 Last revised: 14 Jan 2014
Date Written: January 10, 2014
We report experimental evidence on gender differences in financial decision that involves three depositors choosing between waiting or withdrawing their money from a common bank. We find that the position in the line, the fact of being observed and the observed decisions are key determinants to explain subjects’ behavior. Although both men and women value being observed, it has a greater effect on women’s decisions. Observing a withdrawal increases the likelihood of withdrawal but women and men do not react differently to what is observed, so they are equally likely to panic if a bank run is already underway. Interestingly, risk aversion has no predictive power on depositors’ behavior.
Keywords: bank run, gender difference, strategic uncertainty, experimental evidence, coordination
JEL Classification: C91, D03, D8, G02, J16
Suggested Citation: Suggested Citation