Essentials of Economics

Krugman, Paul; Wells, Robin

4th ed.

New York: Worth Publishers, Macmillan Learning, 2017

p. 271

In game theory, this kind of equilibrium, in which each player takes the action that is best for her given the actions taken by other players, and vice versa, is known as a Nash equilibrium, after the mathematician and Nobel laureate John Nash. (Nash’s life was chronicled in the best-selling biography A Beautiful Mind, which was made into a movie.) Because the players in a Nash equilibrium do not take into account the effect of their actions on others, this is also known as a noncooperative equilibrium.

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p. 326

Finally, economists use the term negative income tax for a program that supplements the earnings of low-income working families.

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p. 271

In game theory, this kind of equilibrium, in which each player takes the action that is best for her given the actions taken by other players, and vice versa, is known as a Nash equilibrium, after the mathematician and Nobel laureate John Nash. (Nash’s life was chronicled in the best-selling biography A Beautiful Mind, which was made into a movie.) Because the players in a Nash equilibrium do not take into account the effect of their actions on others, this is also known as a noncooperative equilibrium.

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p. 325

In means-tested programs, benefits are available only to families or individuals whose income and/or wealth falls below some mini-mum. Basically, means-tested programs are poverty programs designed to help only those with low incomes. By contrast, non-means-tested programs provide their benefits to everyone, although, as we’ll see, they tend in practice to reduce income inequality.

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