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Externalities, Nonconvexities, and Fixed Points

Externalities, Nonconvexities, and Fixed Points

Externalities, Nonconvexities, and Fixed Points

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Lemma 22 (A characterization of USCO correspondences with dense selections,Beer, 1983)Suppose [A-1] holds. Let Γ ∈ U ρZ -w ∗ := U(Z, P w ∗ f(X)). The following statementsare equivalent.(a) Γ has a dense selection.(b) Γ has the following properties:(b-1) For each z ∈ Z the set {(z, Γ(z))} := {(z,x) :x ∈ Γ(z)} includes at most oneisolated point of GrΓ;(b-2) For each (z, x) ∈ {(z,Γ(z))}, (z,x) is not a limit point of GrΓ\{(z, Γ(z))} if<strong>and</strong> only if (z, x) is an isolated point of GrΓ.Let X = Y =[0, 2] <strong>and</strong> consider the USCO, Λ ∈ U := U(X, P f (Y )), givenbyΛ(x) =⎧⎨⎩{0} 0 ≤ x

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