The main concern of this paper is the interplay between functionality
and nondeterminism. We ask whether the analysis of parallelism in term
s of sequentiality and nondeterminism, which is usual in the algebraic
treatment of concurrency, remains correct in the presence of function
al application and abstraction, We argue in favour of a distinction be
tween nondeterminism and parallelism, due to the conjunctive nature of
the former in contrast to the disjunctive character of the latter. Th
is is the basis of our analysis of the operational and denotational se
mantics of the nondeterministic lambda-calculus, which is the classica
l calculus plus a choice operator, and of our election of bounded inde
terminacy as the semantic counterpart of conjunctive nondeterminism. T
his leads to operational semantics based on the idea of must preorder,
coming from the classical theory of solvability and from the theory o
f process algebras. To characterize this relation, we build a model us
ing the inverse limit construction over nondeterministic algebras, and
we prove it fully abstract using a generalization of Bohm trees. We f
urther prove conservativity theorems for the equational theory of the
model and for other theories related to nondeterministic lambda-calcul
us with respect to classical lambda-theories. (C) 1995 Academic Press,
Inc.