Article: Maximin Principle

Maximin Principle

BIBLIOGRAPHY

The maximin principle is a principle for making choices when one is not sure of the outcome that will result from one s choice. The principle says to evaluate each option in terms of the worst possible outcome that could result from choosing that option, and to pick the option that offers the best worst outcome (the maximum minimum or maximin). Rational choice theory generally divides situations in which agents do not know for sure the outcome of their choices into three types: risk, uncertainty, and games. In situations of risk, the probabilities of various outcomes resulting from particular choices are known. In situations of uncertainty, those ...

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