This paper develops the formal foundations for the famous phase transition that physicists call `life at the edge of chaos', the domain on which novelty or innovation emerges. For this the computational approach first introduced to game theory by Kenneth Binmore is used with players modelled as...

The prices of the option and futures of a stock both reflect the market's expectation of futures changes of the stock's price. Their prices normally align with each other within a limited window. When they do not, arbitrage opportunities arise: an investor who spots the misalignment will be able...