Consider the following decision: You have an opportunity to buy an item worth $1000 for $900. You don't have the money, but a friend is willing to loan it to you. You are deciding whether to borrowthe \$900. You told her you'd pay her back with $150 interest. She might tell you don't have to pay the money back, but even if she does you'll still give her the $900 back (but not the interest). You don't know the probability that she'll tell you to keep your money. If you don't borrow the money, you won't get the $1000 item. Consider the payoff table: What Consider the payoff table: What act is recommended by the maximin strategy? Don't borrow from friend Friend will say don't pay Borrow from friend Friend will not say don't pay Reconsider the payoff table: What can we say about borrowing from friend? It is the dominant action. It is the dominant state. It is the state that minimax recommends against. It is the action suggested by maximax strategy