minimax principle

business

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June 30, 2026

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The minimax principle is a decision-making strategy focused on minimizing potential losses, even in the worst possible circumstances. It's a core concept in game theory and decision analysis, particularly when dealing with uncertainty and opposing interests.123

In essence, it suggests choosing the action that offers the best outcome under the most unfavorable conditions. This is closely related to the minimax theorem, which states that the lowest maximum expected loss equals the highest minimum expected gain in a game. This principle helps individuals and businesses make choices that limit their potential downside, rather than solely aiming for the highest possible gain.145

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operations research
Problem formulation
…a choice; this is the “minimax” approach. Alternatively, one may weigh the possible outcomes to reflect one’s optimism or pessimism and then apply the minimax principle. A third approach, “minimax regret,” attempts to minimize the maximum deviation from the outcome that would have been selected if a state of certainty…
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…a choice; this is the “minimax” approach. Alternatively, one may weigh the possible outcomes to reflect one’s optimism or pessimism and then apply the minimax principle. A third approach, “minimax regret,” attempts to minimize the maximum deviation from the outcome that would have been selected if a state of certainty…
Read More