3 ms·
It is not rational to start a bank run, but when there is a bank run, it is actually rational to participate.
by cm2187 4y ago
It is not rational to start a bank run, but when there is a bank run, it is actually rational to participate.
- AnimalMuppet 4y agoWhen you see a bank in condition that a bank run would be a reasonable response, it is rational to pull your money out now. If enough people act rationally (or have that information) at the same time, then a bank run starts, by people acting rationally.