Multi-dimensional iterative reasoning in action: The case of the Colonel Blotto game

• Published in: Journal of economic behavior & organization Vol. 84; no. 2; pp. 571 - 585
• Main Authors: Arad, Ayala, Rubinstein, Ariel
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.11.2012; Elsevier Sequoia S.A
• Subjects: Cognition & reasoning; Colonel Blotto; Computer based; Decision; Decision making; Economic behaviour; Game theory; Games; Games of strategy; Internet; Multi-dimensional iterative reasoning; Multidimensional analysis; Reaction time; Reaction times; Response time; Strategic planning; Studies; Tournaments; C7; Response time; Multi-dimensional iterative reasoning; Colonel Blotto; C9; D03
• ISSN: 0167-2681; 1879-1751
• DOI: 10.1016/j.jebo.2012.09.004

► We introduce a novel decision procedure involving multi-dimensional iterative reasoning. ► The procedure explains the results of a large web-based experiment of a version of the Blotto game. ► The interpretation of choices is supported by subjects’ response times and behavior in another game. We introduce a novel decision procedure involving multi-dimensional iterative reasoning, in which a player decides separately on the various features of his strategy using an iterative process. This type of strategic reasoning fits a range of complicated situations in which a player faces a large and non-ordered strategy space. In this paper, the procedure is used to explain the results of a large web-based experiment of a tournament version of the Colonel Blotto game. The interpretation of the participants’ choices as reflecting multi-dimensional iterative reasoning is supported by an analysis of their response times and the relation between the participants’ behavior in this game and their choices in another game which triggers standard k-level reasoning. Finally, we reveal the most successful strategies in the tournament, which appear to reflect 2–3 levels of reasoning in the two main “dimensions”.