In this paper, we provide unique experimental evidence of depositors’ behaviour in presence of a possibility to convert commercial bank deposits into central bank digital currency (CBDC). Theoretically and experimentally we analyse whether such an option incentivises bank runs. We find that...

The traditional approach in experimental economics is to use a between-subject design: the analyst places each unit in treatment or control simultaneously and recovers treatment effects via differencing conditional expectations. Within-subject designs represent a significant departure from this...