Interactions Between Workers and the Technology ofProduction: Evidence from Professional Baseball

This paper examines how the effort choices of workers within the same firm interact witheach other. In contrast to the existing literature, we show that workers can affect theproductivity of their co-workers based on income maximization considerations, rather thanrelying on behavioral considerations such as peer pressure, social norms, and shame.Theoretically, we show that a worker´s effort has a positive effect on the effort of co-workers ifthey are complements in production, and a negative effect if they are substitutes...