Glossary

The long-run resting point of a dynamic economic model: the level of capital per worker where investment exactly offsets depreciation and population growth, so the state variables stop changing. The reference point the Solow-Swan, Ramsey, and overlapping-generations models all converge toward.

The central solution concept of non-cooperative game theory: a strategy profile in which every player is best-responding to the others, so no one can gain by unilaterally deviating. Underpins Cournot and Bertrand competition, the prisoner's dilemma, and auction theory.

The net change in an economy's capital stock over time: gross investment minus depreciation. Its law of motion is the engine of neoclassical growth theory — the equation that drives the Solow-Swan, Ramsey, and overlapping-generations models toward their steady states.