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In this paper, we investigate packet size optimization to improve energy efficiency of cooperative Wireless Body Area Networks (WBANs). We present models for the packet error rate and the energy efficiency of ARQ scheme for direct as well as cooperative communication scheme. We then consider the packet size optimization for both the transmission schemes. The theoretical analysis and the numerical evaluations reveal that cooperative transmission scheme improves the energy efficiency, increases the optimal payload packet size, and extends the hop length, as compared to direct communication for all scenarios of WBANs that includes both in-body as well as on-body propagation models.