Clarke Normal Cone Research Articles

Ioffe's normal cone and the foundations of welfare economics: An example

We announce an example of an economy with an infinite dimensional commodity space for which the extension of the second fundamental theorem of welfare economics is valid if marginal rates of substitution are formalized in terms of either the Clarke normal cone or the Ioffe normal cone but in which the former is strictly contained in the latter. This is in direct contradiction to the finite dimensional situation.