Predictions on the impact of the budget cap on Formula 1 teams’ performance

Vasileios Kallimogiannis, Christos Massouros


This study aims at quantifying the impact of the budget on the performance of Formula 1 teams. Until recently, the budgets of Formula 1 teams varied, thus, a competitive advantage was provided to those that consistently had greater funds than others. Understanding how dominant the effect of the budget is in the performance of a team will provide significant findings since a cost cap that aims at balancing the financial field, has been recently introduced. Prediction models regarding the team that performed better on a relatively lower budget will provide insights regarding which of them may thrive in the future.

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