Berge's maximum theorem with two topologies on the action set
We give variants on Berge's Maximum Theorem in which the lower and the upper semicontinuities of the preference relation are assumed for two different topologies on the action set, i.e., the set of actions availabe a priori to the decision-maker (e.g. a household with its consumption set). Two new uses are pointed to. One result, stated here without a detailed proof, is the norm-to-weak* continuity of consumer demand as a function of prices (a property pointed to in existing literature but without proof or precise formulation). This improves significantly upon an earlier demand continuity result which, with the extremally strong 'finite' topology on the price space, is of limited interest other than as a vehicle for an equilibrium existence proof. With the norm topology on the price space, our demand continuity result acquires an independent significance - particularly for practical implementations of the equilibrium solution. The second application referred to establishes the continuity of the optimal plan as a function of the decision-maker's information (represented by a field of events in a probability spcace of states).
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References listed on IDEAS
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- Florenzano, Monique, 1983.
"On the existence of equilibria in economies with an infinite dimensional commodity space,"
Journal of Mathematical Economics,
Elsevier, vol. 12(3), pages 207-219, December.
- Florenzano Monique, 1982. "On the existence of equilibria in economies with an infinite dimensional commodity space," CEPREMAP Working Papers (Couverture Orange) 8217, CEPREMAP.
- Bewley, Truman F., 1972. "Existence of equilibria in economies with infinitely many commodities," Journal of Economic Theory, Elsevier, vol. 4(3), pages 514-540, June. Full references (including those not matched with items on IDEAS)