Do baseball players seeking a new contract perform better in the final year of their current contract?

Submitted by: RBrown 30

Yes, baseball players do seeking a new contract perform better in the final year of their current contract.
*Note that the latest study on this question is over 8 years old. A more recent study may provide a more relevant answer.
This short answer was generated by aggregating the answers that each of the 3 studies below gave to the question (as indicated by State of K members) and adjusting for source quality and other factors. If key studies are missing or the answers attributed to individual studies are incorrect, the above answer could be wrong.

Chart summary of 3 studies examining this question

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Jason A. Martin
Trey M. Eggleston
Victoria A. Seymour
Carrie W. Lecrom
2011 in NINE: A Journal of Baseball History and Culture
The Dynamics of Performance Over the Duration of Major League Baseball Long-Term Contracts
"We re-examine incentives in Major League Baseball contracts by considering performance over the duration of the contract. We consider both the incentive to perform in order to maximize the subsequent contract and the disincentive of a fixed salary. We isolate the effect of the latter by controlling for the probability that the contract is the player's last. We find that players who are less likely to sign a subsequent contract have a large and statistically significant reduction in performance compared to expectations. The incentive to perform well in anticipation of signing the next contract is equally large and offsetting so that players who expect to sign another contract largely perform to expectations. ABSTRACT FROM AUTHOR"
Anthony C. Krautmann
John L. Solow
2009 in Journal of Sports Economics
Jahn Karl Hakes
Chad Turner
2008 in SSRN Electronic Journal