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

Kiss, Hubert Janos and Rodriguez-Lara, Ismael and Rosa-García, Alfonso (2014): Do Women Panic More Than Men? An Experimental Study on Financial Decision.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: bank run; gender difference; strategic uncertainty; experimental evidence; coordination
• Subjects: C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior; D - Microeconomics > D0 - General > D03 - Behavioral Microeconomics: Underlying Principles; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; G - Financial Economics > G0 - General > G02 - Behavioral Finance: Underlying Principles; J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender ; Non-labor Discrimination

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