The maximin criterion results in the
A) minimum of the maximum payoffs.
B) maximum of the maximum payoffs.
C) maximum of the minimum payoffs.
D) minimum of the minimum payoffs.

Question

Quizplus · Accepted Answer

The maximin criterion involves choosing the strategy with the maximum of the minimum payoffs. This is a conservative approach that ensures the worst-case scenario is as good as possible. For example, in a game where the maximum payoffs are very high but the minimum payoffs are very low, the maximin criterion would choose the strategy with the highest minimum payoff, even if it means sacrificing some potential maximum payoff.

The Maximin Criterion Results in the