This book elaborates a formalization that allows integrating indirect anaphora in the construction of a structured discourse representation. From a broader viewpoint, it offers an apt dynamic-logic framework which can explain underspecifications in discourse cohesion and coherence by either inferentially resolving or contextually confining them. Central topics comprise pragmatic inferences and defeasible reasoning, coherence and discourse structure, cohesion and anaphora resolution, discourse interpretation and the Common Ground.