Final answer:
The MiniMax Regret Method involves calculating regret values for decision alternatives. Regret values measure potential future regrets by comparing decision outcomes with the best possible outcomes. Without specific data, we can't calculate the exact value for 'Sell software on own'.
Step-by-step explanation:
The MiniMax Regret Method involves calculating the regret values for each decision alternative in a scenario and then choosing the option with the smallest maximum regret to minimize potential future regrets. The regret value is determined by comparing the outcome of a decision to the best possible outcome had a different decision been made. To find the value for the 'Sell software on own' alternative, one would need to calculate the difference between the payoffs of this decision and the best payoff for each state of nature, and then take the maximum of these differences as the regret value for this alternative.
Unfortunately, without specific payoff information or a decision matrix, we cannot calculate the exact regret value for 'Sell software on own'. Typically, you would create a regret table by first finding the best outcomes for each state of nature across all alternatives and then subtracting the actual payoff of each alternative from these best outcomes. The highest regret from 'Sell software on own' across all states of nature would be its MiniMax Regret value.
While regret analysis is not the only decision-making approach, it is beneficial as it takes into consideration the emotional response to opportunities lost due to decisions made. This approach, along with methods like marginal utility analysis, cost/benefit analysis, the Production Possibilities Frontier, and considering sunk costs, can ultimately guide one in making more informed economic decisions.