From SABR member Matt Swartz at The Hardball Times on March 26, 2014:
Most sabermetric analysis falls into one of these two categories: improving the evaluation of player talent or improving the valuation of player talent. Evaluation entails predicting how players will perform or attempting to strip circumstance from performance to get at a true performance or talent level. Valuation is about how to measure that performance itself.
There are two levels of the “valuation” category—translating the performance into wins and losses (often through a WAR model) and translating those wins and losses into dollars to evaluate transactions. Therefore, at the core of what web sites like this provide is quantifying the impact of transactions that front offices make, and that leads right into the debate over the “Dollars-per-WAR” evaluation framework.
This article will run through several important concepts relating to this topic. My next article will dive into the actual calculations.
Read the full article here: http://www.hardballtimes.com/foundations-of-the-dollars-per-war-evaluation-framework/
Originally published: March 27, 2014. Last Updated: March 27, 2014.