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Strategically Revealing Intentions in General Lotto Games

Author

Listed:
  • Keith Paarporn

    (Department of Electrical and Computer Engineering, University of California, Santa Barbara)

  • Rahul Chandan

    (Department of Electrical and Computer Engineering, University of California, Santa Barbara)

  • Dan Kovenock

    (Economic Science Institute, Argyros School of Business and Economics at Chapman University)

  • Mahnoosh Alizadeh

    (Department of Electrical and Computer Engineering, University of California, Santa Barbara)

  • Jason R. Marden

    (Department of Electrical and Computer Engineering, University of California, Santa Barbara)

Abstract

Strategic decision-making in uncertain and adversarial environments is crucial for the security of modern systems and infrastructures. A salient feature of many optimal decision-making policies is a level of unpredictability, or randomness, which helps to keep an adversary uncertain about the system’s behavior. This paper seeks to explore decision-making policies on the other end of the spectrum – namely, whether there are benefits in revealing one’s strategic intentions to an opponent before engaging in competition.We study these scenarios in a well-studied model of competitive resource allocation problem known as General Lotto games. In the classic formulation, two competing players simultaneously allocate their assets to a set of battlefields, and the resulting payoffs are derived in a zero-sum fashion. Here, we consider a multi-step extension where one of the players has the option to publicly pre-commit assets in a binding fashion to battlefields before play begins. In response, the opponent decides which of these battlefields to secure (or abandon) by matching the pre-commitment with its own assets. They then engage in a General Lotto game over the remaining set of battlefields. Interestingly, this paper highlights many scenarios where strategically revealing intentions can actually significantly improve one’s payoff. This runs contrary to the conventional wisdom that randomness should be a central component of decision-making in adversarial environments.

Suggested Citation

  • Keith Paarporn & Rahul Chandan & Dan Kovenock & Mahnoosh Alizadeh & Jason R. Marden, 2021. "Strategically Revealing Intentions in General Lotto Games," Working Papers 21-23, Chapman University, Economic Science Institute.
  • Handle: RePEc:chu:wpaper:21-23
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/363/
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    More about this item

    Keywords

    General Lotto; Colonel Blotto; game; system security; defense; strategic pre-commitment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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