Team Selection with Asymmetric Agents.

In shallow markets where there are mutual gains from cooperation among agents, collusive behavior may occur even if it does not constitute a Nash equilibrium. Yet, such behavior is rarely sustainable. Bolle (1994) reports the results of one period team selection experiments in which subjects often did not follow the Nash equilibrium behavior but engaged in "tacit collusion". We test the robustness of Bolle's findings by introducing asymmetry into subjects' characteristics and repeating the experiment for a number of periods.