Document Type

Working Paper

Date of This Version

7-1-2013

Keywords

agency theory, strategic performance, opportunistic behavior, baseball

Abstract

This study examines ways in which workers respond to implicit incentives. Specifically, we examine the extent to which workers shift their effort to activities that are measured and which have been previously rewarded in the labor market. To examine this question, we examine the changes in the performance measures of professional baseball players in the season prior to the opportunity to freely negotiate their contract (free agency). We will examine different eras in baseball to examine if we can identify changes in behavior in this pivotal year based on changes to the current premium outputs for each time period.

Working Paper Number

1304

Included in

Economics Commons

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