What does the maximin strategy aim to achieve?

The maximin strategy is a decision-making approach used in situations where outcomes are uncertain and can vary widely. By focusing on maximizing the worst-case scenario payoff, this strategy is particularly useful for decision-makers who prioritize minimizing potential losses in unfavorable conditions. Essentially, it encourages selecting an option that offers the best possible minimum outcome, ensuring that even in the least favorable situation, the result is as high as possible.

This perspective is valuable in environments characterized by high uncertainty or where the consequences of poor decisions can be significant. The maximin strategy does not aim to maximize overall profits or performance across various strategies; instead, it is centered on securing the best payoff in the most adverse circumstance, reinforcing its role as a risk-averse approach in decision-making.