Sequential decisions in a bank run model

We study a Diamond-Dybvig model with sequential move. If deposi-tors observe each previous action (both withdrawals and waitings), then there are no bank runs in equilibrium. This result is a natural extension of the original Diamond-Dybvig model when depositors coordinate on run-ning. On the contrary, if only withdrawals are observed, then runs appear in equilibrium. In the third setup we allow (but do not require) agents to report that they wait, and if the cost of reporting is moderate, then truth-telling will be the unique equilibrium and no report about waiting will be made in equilibrium. It suggests that by enriching the commu-nication between the bank and the depositors bank runs resulting from coordination failure can be prevented.