Optimal actions of an agent facing a Shannon capacity constraint on the translation of an uncertain signal into an action can easily turn out to be discretely distributed, even when the objective function and the initial distribution of uncertainty contain no discrete elements. We show this...

A simple single-country model of price determination is displayed. The model captures the same basic ideas as other recent papers on the fiscal approach to analysis of determination of the price level but strips away some technical side issues by omitting money from the model. The model is then...