Do Women Panic More than Men? An Experimental Study on Financial Decision

25 Pages Posted: 12 Jan 2014 Last revised: 14 Jan 2014

See all articles by Hubert Janos Kiss

Hubert Janos Kiss

Eötvös Loránd University; Hungarian Academy of Sciences (HAS) - Institute of Economics CERS-HAS (IEHAS)

Ismael Rodriguez-Lara

University of Granada - Campus La Cartuja

Alfonso Rosa-Garcia

Universidad Católica San Antonio de Murcia

Date Written: January 10, 2014

Abstract

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

Kiss, Hubert Janos and Rodriguez-Lara, Ismael and Rosa-Garcia, Alfonso, Do Women Panic More than Men? An Experimental Study on Financial Decision (January 10, 2014). Available at SSRN: https://ssrn.com/abstract=2377707 or http://dx.doi.org/10.2139/ssrn.2377707

Hubert Janos Kiss (Contact Author)

Eötvös Loránd University ( email )

Pazmany Peter setany 1A
Budapest, -- H1117
Hungary

Hungarian Academy of Sciences (HAS) - Institute of Economics CERS-HAS (IEHAS) ( email )

Budaorsi ut 45
Budapest, 1112
Hungary

Ismael Rodriguez-Lara

University of Granada - Campus La Cartuja ( email )

Campus La Cartuja
Granada
Spain

Alfonso Rosa-Garcia

Universidad Católica San Antonio de Murcia ( email )

Avenida Jerónimos, 135
Guadalupe
Murcia, 30107
Spain

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