Business & Entrepreneurship Journal

Analyzing the performance of the Major League Baseball Teams by using the Data Envelopment Analysis

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  • Abstract

    Professional teams are commercial and recreational organizations, and team managers always set their goals to be playing well and benefitting more in a highly competitive environment. In order to measure the ability of the professional teams to make reasonable use of resources and create various outputs, this study employs the Data Envelopment Analysis (DEA) model to measure the efficiencies of 30 Major League Baseball (MLB) teams. The results showed that the inefficiencies were due to pure technical inefficiencies rather than scale effects, and the scale efficiency on average is more higher than the other efficiencies, applying the managers in the Major League Baseball Teams have higher ability of controlling the scale change.

    Keywords: Major League Baseball, Data Envelopment Analysis, Technical efficiency, Pure technical efficiency, Scale efficiency.