Maximax and maximin strategies
A maximax strategy is a strategy in game theory where a player, facing uncertainty, makes a decision that yields the ‘best of the best’ outcome. All decisions will have costs and benefits, and a maximax strategy is one that seeks out where the greatest benefit can be found. The maximax theorem was first formulated in 1928 by John von Neumann. It is often referred to as an aggressive or optimistic strategy.
A maximin strategy is a strategy in game theory where a player makes a decision that yields the ‘best of the worst’ outcome. All decisions will have costs and benefits, and a maximin strategy is one that seeks out the decision that yields the smallest loss. It is also referred to as a pessimistic or conservative strategy.
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