Unpredictable behavior is central to optimal play in many strategic situations because predictable patterns leave players vulnerable to exploitation. A theory of unpredictable behavior based on differential complexity constraints is presented in the context of repeated two-person zero-sum games....

A theoretical analysis of the new Keynesian Phillips curve (NKPC) is provided, formulating the conditions under which the NKPC coincides with a real-world relation that is not spurious or misspecified. A time-varying-coefficient (TVC) model, involving only observed variables, is shown to exactly...

We present an axiomatization of expected utility from the frequentist perspective. It starts with a preference relation on the set of infinite sequences with limit relative frequencies. We consider three axioms parallel to the ones for the von Neumann–Morgenstern (vN–M) expected utility...