Preventing (panic) bank runs

We study experimentally an instrument to prevent bank runs in healthy banks. In particular, we extend the basic bank-run game, where depositors choose between withdrawing or keeping their money deposited, with a third option, possibility relocate funds priority account that is less profitable, but which guarantees payoff even run. Theoretically, use of this dominates withdrawals for without liquidity needs, and given fact, should optimally keep deposits bank, so no run shall happen. our experiment, find evidence mechanism reduces not only occur because coordination problem among depositors, also panic when can observe action others. However, its effectiveness limited seem recognize protection it provides.