Do women panic more than men? An experimental study of financial decisions

• We study gender differences in a bank run situation.
• We consider a coordination problem with sequential decisions.
• Position in the line, being observed and the observed decisions are key determinants.
• Being observed has a greater effect on women's decisions.
• Men and women are equally likely to panic if a bank run is underway.

We report experimental evidence on gender differences in financial decision-making that involves three depositors choosing whether to keep their money deposited or to withdraw it. We find that one's position in the line, the fact that one is being observed and observed decisions are key determinants in explaining the subjects’ behavior. Our main result is that men and women do not react differently to what is observed. However, there are gender differences regarding the effect of being observed: women value the fact of being observed more, while men value the number of subsequent depositors who observe them. Interestingly, risk aversion has no predictive power on depositors’ behavior.