The mini-max algorithm is a recursive decision-making strategy used in game theory, where two players (max and min) aim to optimize their respective scores by exploring a game tree. It performs a depth-first search to evaluate all possible game states and backtracks to maximize or minimize scores based on terminal node values. While it guarantees a solution in finite search trees and is optimal under perfect play, its time and space complexity is O(bm), making it inefficient for complex games with high branching factors, which can be mitigated through alpha-beta pruning.