Maximin Strategy (Maximize the Minimum Outcome)

A conservative decision rule: choose the option whose worst-case outcome is the best among all options' worst cases. This is the right strategy when you can't afford catastrophic loss—survival is more important than optimality. The limitation: maximin sacrifices expected value for downside protection, making it inappropriate for repeated decisions where you can absorb occasional losses. Used in game theory when facing an adversary and in personal finance for retirement planning.

When to use it

When facing strategic decisions under uncertainty; when multiple stakeholders have competing interests; when the stakes are high and reversibility is low.

How it can help

Provides frameworks for navigating competitive landscapes, allocating resources under uncertainty, and making high-stakes decisions with incomplete information.