ITANorm is on the money, and ITManta is close, but has a bit of a misunderstanding of how burn rate will effect the net 'area under the curve'.
Combustion has (3) key phases, the first two with which we are most concerned: Ignition delay, and combustion. 3rd phase, quench, is important for emissions purposes.
The key to 'Octane' rating is the ignition delay - the time it takes for the atoms to dissociate. Now understand, we are talking at a true "molecule to molecule" level - I'm not talking about the flame front, which mckeaaan explained well. By increasing the delay at a molecular level, the flame front then stays at a more controlled rate, reducing the chance for uncontrolled combustion - knock.
Now, on an in-cylinder pressure standpoint, peak power will result when the peak pressure occurs at 5 deg after top dead center (Plenty of emperical data out there). No earlier, no later; the spark timing should be adjusted to get that timing - timing that is called MBT, or Mean Best Torque. NOW - if you look at area under the curve comparing burn rates of different octane fuels (each adjusted for that 5 degree after TDC peak pressure location), you will find that the FASTER the burn rate, the higher the peak pressure, AND the higher the area under the curve - the IMEP. Slower burn, even adjusted for the best spark advance, will give you less torque, because the peak pressure is much much lower. You want a fast, controlled flame, to give you the most time at a high pressure, each cycle.
When it comes to fuel, the devil is in the details, because non-hydrocarbon additives end up determining the octane rating; from a hydrocarbon to hydrocarbon standpoint, though, Norm is right that the heating value is low for trimethylpentane (C8H18, or isooctane). RULE OF THUMB is that lower octane pump gas provides more power; some of the racing fuels from Sunoco, VP, etc have more power with higher octane because of the exotic chemicals that are included.
If you are using pump gas, use the lowest octane rated gas you can get away with, and adjust your spark timing, either advanced or retarded from your current setting, to get that magical 'MBT'. If not knocking, slightly over advanced will be closer to best torque than slightly under.
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Dave Youngren
NER ITA RX7 #61