The dramatic growth of free agency in Major League Baseball has caused great concern about the competitiveness of some teams, particularly those in smaller markets. The authors use a two-stage data envelopment analysis model as part of a larger analysis to determine the minimum total player...

Data envelopment analysis (DEA) allows us to evaluate the relative efficiency of each of a set of decision-making units (DMUs). However, the methodology does not permit us to identify specific sources of inefficiency because DEA views the DMU as a “black box” that consumes a mix of inputs...