Scenario 13.6
Consider the following game. Payoffs are in millions of dollars.
-Refer to the game in Scenario 13.6. What will occur if ERS Co. plays a maximin strategy?
A) -$100, -$1
B) $2, -$0.5
C) $1, -$1
D) -$0.5, -$0.5
E) There is a 0.25 chance of each outcome in that case.

Question

Scenario 13.6
Consider the following game. Payoffs are in millions of dollars. 
-Refer to the game in Scenario 13.6. What will occur if ERS Co. plays a maximin strategy?
A) -$100, -$1 
B) $2, -$0.5 
C) $1, -$1 
D) -$0.5, -$0.5 
E) There is a 0.25 chance of each outcome in that case.

Quizplus · Accepted Answer

A maximin strategy involves choosing the action that maximizes the minimum payoff achievable. In this scenario, choosing the option that ensures the least negative outcome for ERS Co. would result in a payoff of -$0.5 for both parties, which corresponds to option D.

Scenario 13.6 Consider the Following Game. Payoffs Are in Millions of Dollars