Regret Analysis and Minimax Decision Rules: How to Make Better Choices Under Uncertainty
Regret Analysis and Minimax Decision Rules examines how decision-makers compare choices when probabilities are uncertain, outcomes are contested, and the cost of being wrong matters. Instead of asking only which option has the highest expected value, regret analysis asks how much each choice could underperform compared with the best option after the future is known. The article explains payoff matrices, opportunity loss, maximin reasoning, minimax regret, threshold compliance, robust satisficing, scenario sensitivity, and decision records. It shows why regret-based methods are useful under deep uncertainty, where forecasts may be fragile and stakeholder values may conflict. Through mathematical notation, practical tables, and reproducible Python and R workflows, the article connects decision theory to accountable judgment, downside protection, and robust choice across plausible futures. It emphasizes that better decisions require not certainty, but explicit comparison of consequences, regret, and acceptable risk.









