Focality and Asymmetry in Multi-Battle Contests

Abstract This article examines the influence of focality in Colonel Blotto games with a lottery contest success function (CSF), where the equilibrium is unique and in pure strategies. We hypothesise that the salience of battlefields affects strategic behaviour (the salient target hypothesis) and pre...

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Bibliographic Details
Published in:The Economic journal (London) 2021-05, Vol.131 (636), p.1593-1619
Main Authors: Chowdhury, Subhasish M, Kovenock, Dan, Rojo Arjona, David, Wilcox, Nathaniel T
Format: Article
Language:English
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Summary:Abstract This article examines the influence of focality in Colonel Blotto games with a lottery contest success function (CSF), where the equilibrium is unique and in pure strategies. We hypothesise that the salience of battlefields affects strategic behaviour (the salient target hypothesis) and present a controlled test of this hypothesis against Nash predictions, checking the robustness of equilibrium play. When the sources of salience come from asymmetries in battlefield values or labels (as in Schelling, 1960), subjects over-allocate the resource to the salient battlefields relative to the Nash prediction. However, the effect is stronger with salient values. In the absence of salience, we find support for the Nash prediction.
ISSN:0013-0133
1468-0297
DOI:10.1093/ej/ueaa130