The standard theory of decision making under uncertainty advises the decision maker to form a statistical model linking outcomes to decisions and then to choose the optimal distribution of outcomes. This assumes that the decision maker trusts the model completely. But what should a decision maker do if the model cannot be trusted?

Lars Hansen and Thomas Sargent, two leading macroeconomists, push the field forward as they set about answering this question. They adapt robust control techniques and apply them to economics. By using this theory to let decision makers acknowledge misspecification in economic modeling, the authors develop applications to a variety of problems in dynamic macroeconomics.

Technical, rigorous, and self-contained, this book will be useful for macroeconomists who seek to improve the robustness of decision-making processes.

A family of equivalence tools for bounding network capacities is introduced. Part I treats networks of point-to-point channels. The main result is roughly as follows. Given a network of noisy, independent, memoryless point-to-point channels, a collection of communication demands can be met on the given network if and only if it can be met on another network where each noisy channel is replaced by a noiseless bit pipe with throughput equal to the noisy channel capacity. This result was known previously for the case of a single-source multicast demand. The result given here treats general demands -- including, for example, multiple unicast demands -- and applies even when the achievable rate region for the corresponding demands is unknown in the noiseless network. In part II, definitions of upper and lower bounding channel models for general channels are introduced. By these definitions, a collection of communication demands can be met on a network of independent channels if it can be met on a network where each channel is replaced by its lower bounding model andonly if it can be met on a network where each channel is replaced by its upper bounding model. This work derives general conditions under which a network of noiseless bit pipes is an upper or lower bounding model for a multiterminal channel. Example upper and lower bounding models for broadcast, multiple access, and interference channels are given. It is then shown that bounding the difference between the upper and lower bounding models for a given channel yields bounds on the accuracy of network capacity bounds derived using those models. By bounding the capacity of a network of independent noisy channels by the network coding capacity of a network of noiseless bit pipes, this approach represents one step towards the goal of building computational tools for bounding network capacities.

"Observer Mechanics is an inquiry into the subject of perception. It suggests an approach to the study of perception that attempts to be both rigorous and general. A central thesis of Observer Mechanics is that every perceptual capacity (e.g., stereovision, auditory localization, sentence parsing, haptic recognition, and so on) can be described as an instance of a single formal structure: viz., an "observer.""

via John Langford

pdf of the book by Valentino Braitenberg; I wonder how (and whether) his ideas relate to the work by Rockland, Gaveau, and Mitter on system effectiveness, coherence and adaptiveness