This chapter focused on the baseball production function in general and the measurement of technical efficiency in particular. We found little difference in the efficiency indices generated by the two alternative techniques used in this paper. Using the stochastic model, the efficiency estimates indicate that the Oakland Athletics were the most efficiently managed team from 1982 to 1993.
They were also the most consistent team in their efficiency as indicated by the lowest standard deviation (0.011). The New York Yankees rated a close second to Oakland in both efficiency (second highest mean index) and consistency (second lowest standard deviation). Certainly Sandy Alderson and George Steinbrenner have very different reputations, but by our measures they have both produced superior management for their teams.