Toto Wolff has applauded his drivers' mental strength, saying whether it's a good race or a bad race, they "come out strong."
This past weekend in Spain, Nico Rosberg pulled one back against Lewis Hamilton both in qualifying and the grand prix.
The German claimed his first pole position of this season, ending Hamilton's run, and then used it to launch a successful victory bid.
That too was Rosberg's first of this season while Hamilton's three-stop strategy meant he finished second, although 17 seconds down on his team-mate.
"Both our drivers are very headstrong so whatever happens – a bad weekend or a big defeat – they come out strong again," Wolff told the official F1 website.
"After the debrief is over they concentrate on the next race, so you could say that to have a short term memory helps (laughs).
"Remember last season it was a similar situation when Nico had a run.
"Two drivers who try to outperform each other – that is a dream situation for a team if you handle the rivalry in the right way. It lifts the performance of the whole team; it's actually the best-case scenario!"
The Mercedes motorsport boss also weighed in on his team's gap to Ferrari on Sunday, which saw Rosberg cross the line 45 seconds in front of Sebastian Vettel.
Asked whether Mercedes can now look forward to a season of 1-2 finishes as a 'standard procedure', the Austrian said: "We are always sceptical if something sounds too good to be true. These 'gaps' can turn against you pretty fast if you don't stay on your toes.
"In the last couple of weeks we have not looked left or right: we only concentrated on our performance and bringing the necessary updates to the car, and I have to say some really impressive jobs have been done on the engine side and on the chassis side.
"But I am far from getting carried away by over-optimism believing that it will continue this way forever. It is easy to be caught out – we've seen that in Malaysia!
"There is no such thing as a silver bullet that makes a car paramount over all the others for a long period. Take this weekend: a number of cars have been almost equally fast in sector one and two, but we managed to have a really strong car in sector three, the crucial sector of the track."