income maximization considerations, rather than relying on behavioral considerations such
as peer pressure, social norms, and shame. We show that a worker's effort has a positive
effect on the effort of coworkers if they are complements in production, and a negative effect
if they are substitutes. The theory is tested using a panel data set of baseball players from
1970 to 2003. The results are consistent with the idea that the effort choices of workers …