While any owner may be wrong about any given player, the league as a whole will not be wrong. Thus, in the draft there will be more salary to spend than there is value to be bought. However, this league protects players. However, because the owners are only protecting those players who are perceived to be bargains, only 1,200 salary units are tied up in protecting those players. We further break the draft inflation down between hitters and pitchers.
Most teams enter the draft with a set salary allocation between hitters and pitchers.
Thus, we create a different inflation factor for each. It is not unusual to actually see a pitching deflation in a lot of leagues when using our system. However, every league has an owner who will protect a 1 unit starter if he is the 4th starter on his team. This owner figures he will get 200 innings and 12 to 14 wins. Thus, by protecting players who should not be taken you deflate the value of the remaining players.