In financial markets an excess of buying tends to drive prices up, and an excess of selling tends to drive them down. This is called market impact. Based on a simplified model for market making, it is possible to derive a unique functional form for market impact. This can be used to formulate a...

A criterion based on conditional probabilities, related to the concept of algorithmic distance, is used to detect correlated mutations at noncontiguous sites on sequences. We apply this criterion to the problem of analyzing correlations between sites in protein sequences, however, the analysis...

Computational mechanics, an approach to structural complexity, defines a process's causal states and gives a procedure for finding them. We show that the causal-state representation--an e-machine--is the minimal one consistent with accurate prediction. We establish several results on e-machine...

It has been well-known since the pioneering work of Claude Shannon in the 1940s that a message transmitted with optimal efficiency over a channel of limited bandwidth is indistinguishable from random noise to a receiver who is unfamiliar with the language in which the message is written. In this...