Information and Systemic Risk in Financial Networks: An Experiment

In 2009 the Bank of England stated that “better information on connections between firms in the financial network” is crucial to “building a more resilient financial system”. The aim of this project is to conduct the first experimental study of how the lack of information on where a shock hits the financial network increases the likelihood of contagion and a market freeze. The experimental design will vary both the information available to market participants as well as the financial network that connects them, and it will shed light on their role in determining contagion, price dynamics, and bidding behaviour.

April 2018

August 2017

April 2017

July 2016