Sample (page 657)for study,drawn froma larger univers Sealed-bid auction (page 492)Auction in which all bids are made simultancously in sealed envelopes,the winning bidder being the individual who has submitted the highest bid Secondary supply (page 40)The supply from recycled scrap material. Second-degree price diserimination(page374)Practice of charging different prices per unit for Second-priceueio(page 492)Auction in which the sales price is equal to the second-highest bid. Second theorem of welfare economics (Page 577)If individual preferences are convex,then every efficient allocation is a competitive equilibrium for some initial allocation of goods. Sequential game (page 476)Game in which players move in turn responding to each other's Sherman Act (page 360)A law that prohibits contracts,combinations,or conspiracies that restrain trade,and makes monopolizing or attempting to monopolize illegal. Shirking model (page 617)Principle that workers still have an incentive to shirk if a firm pays them a market-clearing wage.because fired workers can be hired somewhere else for the same sher r(Pae 11 Period oime n icofon or mre production fators camo be changed. Short-run average cost curve (SAC)(page 226)Curve relating average cost of production to output when level of capital is fixed. Shortage(page 2)Situation in which the Slutsky equati (Page 146)Formula for decomposing the effects of a price change int substitution and income effects. Snob effect(Page 129)Negative network externality in which a consumer wishes to own an exclusive or unique good. Social welfare fun tion (page 576)Wei hts applied toeach individual's utility in determining what is socally esi Specific tax(page 314)Tax of a certain amount of money per unit sold. Stackelberg model (page 436)Oligopoly model in which one firm sets its output before other firms do Standard deviation(page 152)Sq oot of the of the squres of the deviations of the ciated w d values ro(59)E ofed devision of rero ach o error Stock of capital(page 189)Total amount of capital available for use in production. Strategic move (Page 479)Action that gives a player an advantage by constraining his behavior. Strategy (Page 462)Rule or plan of action for ing a ga Subsidy (Page 317)Payment reducing the buyer's price below the seller's Substitutes(page 22)Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Substitution effeet(Page 111)Change in consumption of a good associated with a change in itsS Sample (page 657) Set of observations for study, drawn from a larger universe. Sealed-bid auction (page 492) Auction in which all bids are made simultaneously in sealed envelopes, the winning bidder being the individual who has submitted the highest bid. Secondary supply (page 40) The supply from recycled scrap material. Second-degree price discrimination (page 374) Practice of charging different prices per unit for different quantities of the same good or service. Second-price auction (page 492) Auction in which the sales price is equal to the second-highest bid. Second theorem of welfare economics (Page 577) If individual preferences are convex, then every efficient allocation is a competitive equilibrium for some initial allocation of goods. Sequential game (page 476) Game in which players move in turn, responding to each other’s actions and reactions. Sherman Act (page 360) A law that prohibits contracts, combinations, or conspiracies that restrain trade, and makes monopolizing or attempting to monopolize illegal. Shirking model (page 617) Principle that workers still have an incentive to shirk if a firm pays them a market-clearing wage, because fired workers can be hired somewhere else for the same wage. Short run (Page 181) Period of time in which quantities of one or more production factors cannot be changed. Short-run average cost curve (SAC) (page 226) Curve relating average cost of production to output when level of capital is fixed. Shortage (page 24) Situation in which the quantity demanded exceeds the quantity supplied. Slutsky equation (Page 146) Formula for decomposing the effects of a price change into substitution and income effects. Snob effect (Page 129) Negative network externality in which a consumer wishes to own an exclusive or unique good. Social welfare function (page 576) Weights applied to each individual’s utility in determining what is socially desirable. Specific tax (page 314) Tax of a certain amount of money per unit sold. Stackelberg model (page 436) Oligopoly model in which one firm sets its output before other firms do. Standard deviation (page 152) Square root of the average of the squares of the deviations of the payoff s associated with each outcome from their expected values. Standard error of the regression (Page 659) Estimate of the standard deviation of the regression error. Stock of capital (page 189) Total amount of capital available for use in production. Strategic move (Page 479) Action that gives a player an advantage by constraining his behavior. Strategy (Page 462) Rule or plan of action for playing a game. Subsidy (Page 317) Payment reducing the buyer’s price below the seller's price; i.e., a negative tax. Substitutes (page 22) Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Substitution effect (Page 111) Change in consumption of a good associated with a change in its