Rodney J. Garratt

Maxwell C. and Mary Pellish Chair in Economics

University of California Santa Barbara


3046 North Hall, 


Courses: Econ 177, Econ 171, Econ 210B, Econ 135


Recent Working Papers:


Cadcoin versus Fedcoin


Bitcoin 1, Bitcoin 2,…: An experiment in competing outside monies, with Neil Wallace


Efficient Bilateral Trade, with Marek Pycia


Let George Do It: Motives of Competing Altruists, with Ted Bergstrom and Greg Leo


Segregated Balance Accounts, with Antoine Martin, Jamie McAndrews and Ed Nosal, Federal Reserve Bank of New York Staff Reports, no. 730, May 2015.


Missing Links: A Global Study on Uncovering Financial Network Structure from Partial Data, with Kartik Anand, Iman van Lelyveld, Ádám Banai, Soeren Friedrich, Gregorz Halaj, Bradley Howell, Ib Hansen, Serafín Martínez Jaramillo, Hwayun Lee, Jose Luis Molina-Borboa, Stefano Nobili, Sriram Rajan, Dilyara Salakhova, Thiago Christiano Silva, Laura Silvestri and Sergio Rubens Stancato de Souz, 2015


Nonlinear Pricing with Competition: The Market for Settling Payments, with Adam Copeland, Federal Reserve Bank of New York Staff Reports, no. 737, August 2015.  


Centralized Netting in Financial Networks, with Peter Zimmerman


Auctions with Speculators: An Experimental Study, with Sotiris Georganas


Ideal Bootstrapping and Exact Recombination: Applications to Auction Experiments, with C. Bergstrom and T. Bergstrom


Journal Publications:


The Connectedness of the Set of Equilibrium Money Prices Depends on the Choice of the Numeraire, Journal of Economic Theory 1992, 56 (1), 206-217


Public Finance of Private Goods: The Case of College Education (with J. Marshall), Journal of Political Economy 1994, 102 (3), 566-582


Concavifiability and The Marginal Rate of Substitution (with C.-Z. Qin), Journal of Mathematical Economics 1994 23 (4), 395-397


Income Redistributions Without Catastrophes (with A. Goenka), Journal of Economic Dynamics and Control 1995, 19, 441-455


Decentralizing Lottery Allocations in Markets With Indivisible Commodities, Economic Theory 1995, 5, 295-313


Optimum College Admissions, Taxes, and Tuitions When Completion is Uncertain (with J. M. Marshall), Education Economics, December 1995, 3 (3), 219-234


Cores and Competitive Equilibria in an Exchange Model With Indivisibilities and Lotteries (with C.-Z. Qin), Journal of Economic Theory, February 1996, 68 (2), 531-543 


Insurable Interest, Options to Convert and Demand for Upper Limits in Optimum Property Insurance (with J. M. Marshall), Journal of Risk and Insurance, June 1996, 63 (2), 185-206 


Indivisibilities, Inferior Goods and Giffen Goods, Canadian Journal of Economics, February 1997, 30 (1), 246-251


On a Market for Coalitions With Indivisible Agents and Lotteries (with C.-Z. Qin), Journal of Economic Theory, November 1997, 77 (1), 81-101 


On Bargaining for an Indivisible Good, Games and Economic Behavior, 1999, 26, 186-192


On Market Games When Agents Cannot be Two Places at Once (with C.-Z. Qin), Games and Economic Behavior, May 2000, 31 (2), 165-173


A Free Entry and Exit Experiment, Journal of Economic Education, Summer 2000, 31 (3), 237-243


Exclusions and the Demand for Property Insurance 
(with J. M. Marshall), Geneva Papers on Risk and Insurance Theory, 2001, 25, 131-139


Equilibrium Prices when the Sunspot Variable is Continuous (with T. Keister, C.-Z. Qin and K. Shell), Journal of Economic Theory, November 2002, 107, 11-38.


A Characterization of Robust Sunspot Equilibria (with T. Keister), Journal of Economic Theory, November 2002, 107, 136-144


Equity Risk, Conversion Risk, and the Demand for Insurance (with J. M. Marshall), Journal of Risk and Insurance, September 2003, 70, 439-460


On Cooperation Structures Resulting from Simultaneous Proposals (with C.-Z. Qin), Economics Bulletin, 2003, Vol. 3 no. 5 pp. 1-9. (Link to paper)


The Intraday Liquidity Management Game (with M. Bech), Journal of Economic Theory, April 2003, 109, 198-219


On Potential Maximization as a Refinement of Nash Equilibrium (with C.-Z. Qin), Economics Bulletin, 2003, Vol. 3 no. 12 pp. 1-11. (Link to paper)


Comparing Sunspot Equilibrium and Lottery Equilibrium Allocations:  The Finite Case (with T. Keister and K. Shell), International Economic Review, May 2004, Vol. 45, No. 2, 351-386


A Tale of Two Cities and a Giffen Good, Canadian Journal of Economics, February 2005, 38(1), 49-56


Potential Maximization and Coalition Government Formation (with J. Parco, C.-Z. Qin, and A. Rapoport), International Game Theory Review, forthcoming. (Link to working paper)


Speculation in Standard auctions with Resale (with Thomas Tröger). See also the online supplement published by Econometrica entitled Supplement to Speculation in Standard auctions with Resale (with T. Troger), Econometrica, May 2006, 74(3), 753-769. (Link to paper)


Collusion via Resale (with T. Tröger and C. Zheng), Econometrica, July 2009, 77(4), 1095-1136. (Link to paper)


Bank Runs as Coordination Failures: An Experimental Study (with T. Keister), Journal of Economic Behavior & Organization, August 2009, 71(2), 300-317. (Link to working paper)


One Chance in a Million: Altruism and the Bone Marrow Registry  (with T. Bergstrom and D. Sheehan-Connor), American Economic Review, September 2009, 99(4), 1309-34. (Link to working paper)


Which Bank is the “Central” Bank? (with M. Bech and J. Chapman), Journal of Monetary Economics, April 2010, 57(3), 352-363. (Link to working paper)


Efficiency in Second-Price Auctions: A New Look at Old Data (with J. Wooders), Review of Industrial Organization, July 2010, 37, 43-50. (Link to paper)


The State Street Mile: Age and Gender Differences in Competition-Aversion in the Field (with C. Weinberger and N. Johnson), Economic Inquiry, January 2013, 51(1), 806-815. (Link to working paper)


Behavior in Second Price Auctions by Highly Experienced eBay Buyers and Sellers (with J. Wooders and M. Walker), Experimental Economics, March 2012, 15(1), 44-57. (Link to working paper)


Illiquidity in the Interbank Payment System Following Wide-Scale Disruptions (with M. Bech), Journal of Money, Credit & Banking. August 2012, 44(5), 903-929. (Link to working paper)


Stem Cell Matching for Patients of Mixed Race (with T. Bergstrom and D. Sheehan-Connor), forthcoming in The B.E. Journal of Economic Analysis & Policy. (Link to working paper)


Choosing Partners: A Classroom Experiment (with C. Bergstrom and T. Bergstrom) Journal of Economic Education. January 2013, 44(1), 47-57. (Link to working paper)


The Role of Counterparty Risk in CHAPS Following the Collapse of Lehman Brothers (with E. Benos and P. Zimmerman) International Journal of Central Banking, December 2014, 10(4), 143-171. (Link to working paper)


The Great Entanglement: The Contagious Capacity of the International Banking Network Just Before the 2008 Crisis (with L. Mahadeva and K. Svirydenska) Journal of Banking & Finance, December 2014, 49, Pages 367–385. (Link to working paper)


Mapping Change in the Interbank Money Market (with M. Bech, C. Bergstrom and M. Rosvall) Physica A: Statistical Mechanics and its Applications, April 2015, 424, 44-51. (Link to working paper)


Saving Lives with Stem Cell Transplants (with T. Bergstrom and D. Sheehan-Connor) Journal of Risk and Uncertainty, August 2015, Volume 51, Issue 1, pp 23-51.


Identification of Over and Under Provision of Liquidity in Real-Time Payment Systems (with E. Dendee and P. Zimmerman) Journal of Financial Market Infrastructures December 2015, 4(2), 1-19.


Using Shapley’s Asymmetric Power Index to Measure Banks’ Contributions to Systemic Risk (with Lewis Webber and Matthew Willison) Journal of Network Theory in Finance, June 2016, 2(2). 35-55. (Link to working paper)


Book Chapters:


Supplemental Health Insurance, with J. M. Marshall, in Essays in Law and Economics: Financial Markets and Insurance, (D. Heremans, P. Van Cayseele and R. Van den Bergh, Eds.), MAKLU Publishers, Antwerpen-Appeldoorn, 1996


Lotteries and the Law of Demand, in New Insights into the Theory of Giffen Goods, (W Heijman and P. von Mouche, Eds.),  Lecture Notes in Economics and Mathematical Systems 655, Springer-Verlag Berlin Heidelberg 2012 (Link to paper)


Methods for evaluating liquidity provision in real-time gross settlement payment systems, with E. Denbee and P. Zimmerman, in Diagnostics for the Financial Markets – Computational Studies of Payment System,

Simulator Seminar Proceedings 2009–2011, Chapter 3, Matti Hellqvist and Tatu Laine, Eds) Scientific Monographs E:45, 2012 (Link to paper)


Older Unpublished working Papers


Does a Central Clearing Reduce Counterparty Risk in Realistic Financial Networks?, with Peter Zimmerman, Federal Reserve Bank of New York Staff Reports, no. 717, March 2015.


Bank Behavior and Risks in CHAPS Following the Collapse of Lehman Brothers, with E. Benos and P. Zimmerman Bank of England Working Paper #451, June 2012.


Mapping Systemic Risk in the International Banking Network, with Lavan Mahadeva and Katya Svirydenska, Bank of England Working Paper #413, March 2011.


Inefficient Equilibrium of Second-Price/English Auctions with Resale, with T. Tröger and C. Zheng, 2006


Property Insurance with Conversion Options: Upper Limits and Deductibles, with J. M. Marshall, 1999


Health Care Contracts and Exclusions, with J. M. Marshall, 1997


Further Evidence of the Necessity of Sunspots, with K. Shell, UCSB Working Paper in Economics #6-93



Stem Cell Matching, Mapping Systemic Risk, One in a million class presentation, Second Chance Offers, Efficient Bilateral Trade, Segregated Balance Accounts, Auctions with Speculators: Experiment, Missing Links


Additional Links:

UCSB Economics Department



Link to FT Alphaville article on “Mapping Systemic Risk…”

VOX Article on “Bank behavior and risks…”

Here is a fun classroom experiment related to Gale and Shapley’s two-sided matching algorithm.

Hockey stats



Last modified August, 2016.