So is f1
Is f1 like baseball where the big market teams usually win? Are there no specs to adhere to? What are the main differences to f1 and Indy cars?
In many ways, yeah. If you're not a big team with manufacturer having, you probably won't be winning. Red Bull Racing is the most recent exception to this when they had a big run of dominance from 2010-2014, but they also had arguably the best aerodynamicist and car designer in Adrian Newey. Before that it would have been McLaren, and Williams before that. Every now and then a privateer team will make big gains, but the season is long and if you aren't moving forward with your upgrades, you're moving backwards. For example, Ferrari went down a bad path with development last year and it took them too long to change course and correct, probably costing them the drivers championship. If their budget is in the hundreds of millions, imagine what would happen for a team that's barely putting together 20 or 30 million.
jj23 was on the money. F1 puts out regulations (or a formula, hence the name) and teams build a car from scratch from their interpretation of the regulations. Other than the tires, the rain light, the on-board cameras, and some FIA sensors, everything is bespoke. Even though Ferrari supplies the same engine to Alfa Romeo, the packaging of the cooling, electronics, etc. are one off. Even the ECU software is written by each team. Because everything is custom and they push the limits of performance, you end up with these insane 20+ million dollar budgets on the low end.
Indycar is much more affordable because there's a more spec parts. The chassis and aerodynamics is one design from Dallara. I'm pretty sure suspension and brake assemblies are spec. I think the only area for improvement is with the engine but I doubt teams get a say in that. There are only 2 engine suppliers right now, Chevy and Honda. From what I've seen they aren't too far off in performance. I think you can purchase an Indycar chassis for about 250 grand. I think some teams might be running a full season on around 5-8 million dollars. As far as racing goes, it's relatively affordable.
On terms of performance F1 is miles ahead of Indycar. At Circuit of the Americas in Austin, the lap time difference was like 14 seconds. F1 engines are more powerful, the aerodynamics are way stronger. Indycar engines aren't that far behind in horsepower, but they don't have the hybrid energy recovery systems that make F1 engines torquey as hell. Their aero is much simpler and they don't have power steering. I think the better direct comparison would be between Indycar and Formula 2, since the later is closer in performance. The only caveat is F2 is a feeder series to F1 while Indycar is the highest open wheel category in the US.
I think the last real difference is F1 doesn't race ovals. The closest they get to a speedway is Monza in Italy (actually was an oval in the beginning) or the circuit they run the Mexican GP at.