nep-spo New Economics Papers
on Sports and Economics
Issue of 2019‒04‒15
one paper chosen by
Humberto Barreto
DePauw University

  1. Spillovers and Substitutability in Production By Papps, Kerry L.; Bryson, Alex

  1. By: Papps, Kerry L. (University of Bath); Bryson, Alex (University College London)
    Abstract: Can the existence of positive productivity spillovers between co-workers be explained by the presence of complementarities in a firm's production function? A simple model demonstrates that this is possible when workers perform their tasks sequentially and part of individuals' pay is determined by the firm's output, but also that negative spillovers may arise when workers can raise overall output unilaterally. Data from major league baseball support these predictions. They show that the pairs of players who are most complementary in the production process exert the largest positive spillovers on each other, but that negative spillovers predominate between all player pairs.
    Keywords: spillovers, teams, substitutes, complements, baseball
    JEL: D24 J24 L23 M52
    Date: 2019–03

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