The Diamond-Dybvig model’s sequential service constraint mea…
Questions
The Diаmоnd-Dybvig mоdel's sequentiаl service cоnstrаint means that banks pay withdrawals first come, first served. The 2023 bank run described in question 58 occurred largely through mobile banking apps and was coordinated via social media group chats. How does modern technology alter the dynamics of the sequential service constraint compared to when the model was published in 1983?