Budget efficiency performance in Formula 1
Date
2022-07
Authors
Afflitto, Pedro
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Ertola Navajas, Gabriela
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This study will assess the efficiency of different F1 teams -or Constructors- based on their
budget and points obtained during a racing season. A Data Envelopment Model (DEA) is
used to measure each team's efficiency relative to each other. Teams or decision making
units -as defined by the model- that lie on the efficient frontier are deemed efficient. We have
conducted our analysis using data from 2008 to 2020 for a total of thirteen years. Most
teams are inefficient, not only relative to each other but to their scale efficiency. The model
also suggests projected budgets based on each constructor´s performance so that they may
achieve the same result more efficiently. We will discuss the feasibility of these projections
providing a variety of possible solutions and strategies taking into consideration Formula 1's
current context and a detailed breakdown of a Constructor's cost.
Description
Fil: Afflitto, Pedro. Universidad de San Andrés. Departamento de Economía; Argentina.