Abstract In this paper, we establish a sharp concentration-compactness principle associated with the singular Adams inequality on the second-order Sobolev spaces in ℝ 4 {\mathbb{R}^{4}} . We also give a new Sobolev compact embedding which states W 2 , 2 ( ℝ 4 ) {W^{2,2}(\mathbb{R}^{4})} is compactly embedded into L p ( ℝ 4 , | x | - β d x ) {L^{p}(\mathbb{R}^{4},|x|^{-\beta}\,dx)} for p ≥ 2 {p\geq 2} and 0 < β < 4 {0<\beta<4} . As applications, we establish the existence of ground state solutions to the following bi-Laplacian equation with critical nonlinearity: Δ 2 u + V ( x ) u = f ( x , u ) | x | β in ℝ 4 , \displaystyle\Delta^{2}u+V(x)u=\frac{f(x,u)}{|x|^{\beta}}\quad\mbox{in }% \mathbb{R}^{4}, where V ( x ) {V(x)} has a positive lower bound and f ( x , t ) {f(x,t)} behaves like exp ( α | t | 2 ) {\exp(\alpha|t|^{2})} as t → + ∞ {t\to+\infty} . In the case β = 0 {\beta=0} , because of the loss of Sobolev compact embedding, we use the principle of symmetric criticality to obtain the existence of ground state solutions by assuming f ( x , t ) {f(x,t)} and V ( x ) {V(x)} are radial with respect to x and f ( x , t ) = o ( t ) {f(x,t)=o(t)} as t → 0 {t\rightarrow 0} .
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