Consider the set of probability measures on a product space with the property that all have the same marginal distributions on the coordinate spaces. This may be viewed as a correspondence when the marginal distributions are varied. Here, it is shown that this correspondence is continuous. Numerous problems in economics involve optimization over a space of measures where one or more marginal distributions is given. Thus, for this class of problem, Berge's theorem of the maximum is applicable: the set of optimizers is upper-hemicontinuous and the value of the optimal solution varies with the parameters (marginals) continuously.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
959.
Find related papers by JEL classification: C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory