preview

Moneyball Movie Analysis

Good Essays

Moneyball
Economics is the study of scarcity, decision-making, and how people use their resources. Micro-Economics is the social science that deals with the allocation of scarce resources with unlimited wants. Moneyball is a movie about a professional small-league baseball team. The Oakland A’s who is in a financial hardship uses economics and statistical data to win the next championship. Moneyball the movie shows how one can use long-runs and short runs and marginal cost to change the way baseball franchises spend their money.
In baseball history, franchises tend to buy high-stakes player while trying to buy wins. Billie Bean, the Oakland A’s general manager, noticed that his small league team was facing financial difficulties and could not afford the top paid players like the New York Yankee’s and Atlanta Braves. This contributed to Bean losing his top three best baseball players; Due to another top paid team making a better offer. This motivated Billie to reach out to Peter Brand, an Yale Economic student, who worked for another major-league baseball team. Together, this dynamic duo started to search for incontinences in the baseball world. In the movie, there is a scene were the head scouts and the general manager was sitting at a roundtable meeting. One of the scouts suggested that in baseball the qualifications were to be of a good age, have a nice appearance and looks and some talent. Billie Bean made a statement that there are “Rich teams, Poor teams…50 feet of crap… then it us (Oakland A’s). How do we equalize that ?” While trying to find a replacement for the three top players, Peter Brand, suggest that franchises buy players to buy wins and wins buys runs. Thus idea, sparked the mind of Billie Bean, and together they used statistical data and economics to determine what players they could afford within the teams means. Peter used a player’s analytic to compute runs scored over runs scored squared plus runs allowed to get the marginal profit and marginal cost. Using this formula aided in the Oakland A’s success. It kept the Oakland A’s from mismanaging their team and overpayment. Peter Brand states in the movie; “It's about getting things down to one number. Using the stat’s the way we read

Get Access