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Tuesday September 22nd 2020

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Major League Baseball: Finding a Market Inefficiency

running a major league team, there are only so many ways you can gain a real advantage. Having more capital then your opponent is the easiest way, but teams continually look for other ways to better themselves at an inexpensive price.

This is termed a market inefficiency. Basically, the best thing a team can do is find something of value that isn't being valued properly on the open market.

While many people ignorantly think Michael Lewis's Moneyball is about sabermetrics, this is what it was really about: finding market inefficiencies and using them to your advantage. The biggest example that was used in this case was on-base percentage, which was significantly undervalued at the time.

At this point, something as simple as OBP is ...

Read Full Article at Bleacher Report - New York Yankees


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