Continuity of Minima: Local Results

Abstract

Berge’s maximum theorem is an important statement in set-valued analysis that has significant applications in mathematical economics, operations research, and control. For a minimization problem for a continuous function of two variables and continuous compact-valued set-valued mapping defining feasible sets, this theorem states continuity of the value function and upper semi-continuity of the solution multifunction. One of the main limitations of this theorem is that the set-valued mapping is compact-valued. Recently the authors of this paper and their coauthors generalized Berge’s maximum theorem to set-valued mappings that may not be compact-valued. Here we formulate and prove the local Berge’s maximum theorem for possibly noncompact feasible sets and show that it is more general than the recently established Berge’s maximum theorem for possibly noncompact feasible sets and than the known formulations of the local Berge’s maximum theorem.