To withdraw, or not to withdraw?
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- island bank takes deposits, makes profitable loans
- withdrawals under safe level: bank honors withdrawal request
- when loan repaid, bank shares profits with those who have not withdrawn
- too many withdrawals: bank failure.
- bank must sell loan at a loss
- today's withdrawals receive less than initial deposit
- those who have not requested withdrawal lose entire deposit
- day 1: each player in group deposits same amount of money
- each day before loan repayment date (including day 1), each player with money in the bank simultaneously chooses either Leave in Bank or Withdraw
- if, after today's choices, total withdrawals ≤ safe withdrawals, bank is solvent
- anyone withdrawing today receives back initial deposit
- if loan repayment date is tomorrow, those leaving in bank today receive deposit plus return tomorrow
- if, after today's choices, total withdrawals > safe withdrawals, bank fails
- those requesting withdrawal today get portion of initial deposit
- those who left money in bank get nothing back. ever.