Abstract
We use a conjoint analysis of 551 subjects to compare the reaction of finance professionals to news of a banking crisis with the reactions of non-finance professionals and graduate students. All three groups make greater deposit withdrawals if deposit insurance protection involves a haircut, but the response of finance professionals is more nuanced: compared to non-finance professionals and students, they seem to care about haircuts mainly when bank capitalization is low and less so when capitalization is high. Both finance and non-finance professionals are more concerned about the pre-funding of deposit insurance than are students. Overall, while our results seem to indicate that finance professionals might be more financially savvy, they also suggest that the crisis-response behavior of finance professionals does not differ substantively from that of the other two groups.
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