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Allocation of Heterogeneous Resources in General Lotto Games

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  • Keith Paarporn
  • Adel Aghajan
  • Jason R. Marden

Abstract

The allocation of resources plays an important role in the completion of system objectives and tasks, especially in the presence of strategic adversaries. Optimal allocation strategies are becoming increasingly more complex, given that multiple heterogeneous types of resources are at a system planner's disposal. In this paper, we focus on deriving optimal strategies for the allocation of heterogeneous resources in a well-known competitive resource allocation model known as the General Lotto game. In standard formulations, outcomes are determined solely by the players' allocation strategies of a common, single type of resource across multiple contests. In particular, a player wins a contest if it sends more resources than the opponent. Here, we propose a multi-resource extension where the winner of a contest is now determined not only by the amount of resources allocated, but also by the composition of resource types that are allocated. We completely characterize the equilibrium payoffs and strategies for two distinct formulations. The first consists of a weakest-link/best-shot winning rule, and the second considers a winning rule based on a weighted linear combination of the allocated resources. We then consider a scenario where the resource types are costly to purchase, and derive the players' equilibrium investments in each of the resource types.

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  • Keith Paarporn & Adel Aghajan & Jason R. Marden, 2025. "Allocation of Heterogeneous Resources in General Lotto Games," Papers 2505.02860, arXiv.org.
  • Handle: RePEc:arx:papers:2505.02860
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    References listed on IDEAS

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    1. Christian Ewerhart & Dan Kovenock, 2019. "A Class of N-player Colonel Blotto games with multidimensional private information," ECON - Working Papers 336, Department of Economics - University of Zurich, revised Feb 2021.
    2. Dan Kovenock & Brian Roberson, 2012. "Coalitional Colonel Blotto Games with Application to the Economics of Alliances," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 653-676, August.
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