Game Theory

Management > Crisis Management > Lectures > Independent Research > Game Theory > Nash equilibrium > Business Nash Equilibrium > Strictly dominant strategies > SDS for companies > IEDS > Minimax

Minimax

Minimax is the minimising the maximum loss (or maximin, which is maximising the minimum gain), which can be applied in a general decision-making process in an uncertain situation, where facts are unknown.

If a decision is made it will either result in great losses or great benefits, so it should be assumed that the worst will happen no matter what is decided and actions should be taken to minimise the loss, which ever decision is taken.

Often, managers during a crisis do not have accurate or complete information, but they must be able to do the best with what they have, using the data they do have to bring the company out of a crisis by minimising maximum losses.

Backward induction

Forward induction