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Externalities, Nonconvexities, and Fixed Points

Externalities, Nonconvexities, and Fixed Points

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Noting that if E ∈ D eE ,thenn eE (E) ∩ B w ∗(ε 0 ,m(E 0 )) = {x E } for some x E ∈ D(E) =D( e E) <strong>and</strong>wehaveforeachE ∈ B w ∗ ×w ∗(δ0 ,E 0 ) ∩ D e E ,m(E) =n eE (E) ∩ B w ∗(ε 0 ,m(E 0 )) = {x E } ∈ D(E). (85)Because m(E 0 ) is a proper subset of n e E (E0 ),wecanchooseε 0 > 0 so that for k EE0such that1k EE0 < δ 0 ,wehaveforallk ≥ k EE0 <strong>and</strong> all E ∈ B w ∗ ×w ∗( 1 k ,E0 ) ∩ D eEn eE (E) ∩ B w ∗(ε 0 ,m(E 0 )), a nonempty proper subset of n eE (E 0 ).Also, because n e E (E0 ) is minimally essential for N(E 0 ) on S, [n e E (E0 )∩B w ∗(ε 0 ,m(E 0 ))]is not essential for N(E 0 ) on S. Thus, there exists some ε 1 > 0 such that for allk HE0 > 0, there exists for each k ≥ k HE0 , H k ∈ B hw ∗ ×w ∗ ( 1 k ,E0 ) ∩ D such thatN(H k ) ∩ B w ∗(ε 1 ,n e E (E0 ) ∩ B w ∗(ε 0 ,m(E 0 ))) = ∅. (86)Similarly, because for all E ∈ S, n(E) is minimally essential for N(E), giventhis ε 1 there is also for each E ∈ B hw ∗ ×w ∗ ( 1 k ,E0 ) ∩ D eE , a positive integer k FE > 0depending on the E ∈ B hw ∗ ×w ∗ (1k EE0 ,E 0 ) ∩ D eE chosen such that for each k ≥ k FEN(F ) ∩ B w ∗(ε 1 ,n e E (E)) 6= ∅, for all F ∈ B h w ∗ ×w ∗ ( 1 k ,E) ∩ D<strong>and</strong> because n eE (E) is a singleton,N(F ) ∩ B w ∗(ε 1 ,n e E (E) ∩ B w ∗(ε0 ,m(E 0 ))) 6= ∅.Given (86) we have for some ε 2 ∈ (0, ε 1 )Ls © N(H k ) ª ∩ B w ∗(ε 2 ,n e E (E0 ) ∩ B w ∗(ε 0 ,m(E 0 ))) = ∅.Finally, let ε 3 > 0 be such that<strong>and</strong> letB w ∗(ε 3 ,Ls © N(H k ) ª ) ∩ B w ∗(ε 2 ,n e E (E0 ) ∩ B w ∗(ε 0 ,m(E 0 ))) = ∅, (87)ε ∗ X:= min © h w ∗({b}, {a}) :b ∈ Ls © N(H k ) ª ; a ∈ B w ∗(ε 2 ,n e E (E0 ) ∩ B w ∗(ε 0 ,m(E 0 ))) ª ,where recall, h w ∗is the Hausdorff metric on P w ∗ f(X). We have0 < ε ∗ X < ε2 + ε 3 .But now we have a contradiction. To see this, choose a sequence of Ky Fan sets,©E ν ,H ν ,F vkª ν,k ⊂ D e E× S × D,52

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