This report describes an approach to modelling conversation. It is suggested that to succeed at this endeavour, the problem must be tackled principally as a problem in pragmatics rather than as one in language analysis alone. Several progmatic aspects of conversation are delineated and it is shown that the attempt to account for them raises a number of general issues in the representation of knowledge. .br A scheme for resolving some of these issues is presented and given computational description as a set of (non-implemented) LISP-based control structures called $\mid$LISP. Central to this scheme are several different types of objects that encode knowledge and communicate this knowledge by passing messages. One particular kind of object, the pattern expression ($\mid$PEXPR), turns out to be the most versatile. $\mid$PEXPRs can encode an arbitrary amount of procedural or declarative information; are capable, as a by-product of their message passing behaviour, of providing both a context for future processing decisions and a record of past processing decisions; and make contributions to the resolution of several artificial intelligence problems. .br Some examples of typical conversations that might occur in the general context of attending a symphony concert are then explored, and a particular model of conversation to handle these examples is detailed in $\mid$LISP. The model is goal oriented in its behaviour, and, in fact, is described in terms of four main goal levels: higher level non-linguistic goals; scripts directing both sides of a conversation; speech acts guiding one conversant's actions; and, finally, language level goals providing a basic parsing component for the model. In addition, a place is delineated for belief models of the conversants, necessary if utterances are to be properly understood or produced. The embedding of this kind of language model in a $\mid$LISP base yields a rich pragmatic environment for analyzing conversation.
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