Abstract1. Introduction2. Dynamics of Team Production3. From One Team to Six Million Firms, Computationally4. Model Variations: Sensitivity and Robustness5. Summary and ConclusionsAppendix A. Generalized Preference SpecificationsAppendix B. Generalized Compensation and Nash StabilityAppendix C. Sensitivity to ‘Sticky’ Effort AdjustmentAppendix D. Extension: Stabilizing Effect of Agent LoyaltyAppendix E. Extension: HiringAppendix F. Extension: Effort Monitoring and Worker TerminationReferences