Let C be a basic indecomposable hereditary K-coalgebra, where K is an arbitrary field. We investigate a technique for studying C and left C-comodules by means of the left valued Gabriel quiver of C, an associated Tits quadratic form and locally nilpotent representations of the Ext-species of C. One of the main aims of the paper is to prove the following result. Let { S ( j ) } j ∈ I C be a complete set of pairwise non-isomorphic simple left C-comodules and, given i , j ∈ I C , we set s i j 1 = dim K Ext C 1 ( S ( i ) , S ( j ) ) . Then every left C-comodule is a direct sum of finite dimensional C-comodules if and only if the following four conditions are satisfied: (a) for any j ∈ I C , the sum ∑ i ∈ I C s i j 1 + ∑ i ∈ I C s j i 1 is finite, (b) the set { i ∈ I C ; ∑ j ∈ I C s j i 1 = 0 } is finite, (c) there is no infinite sequence j 1 , … , j m , … of elements of I C such that Ext C 1 ( S ( j 2 ) , S ( j 1 ) ) ≠ 0 , Ext C 1 ( S ( j 3 ) , S ( j 2 ) ) ≠ 0 , … , Ext C 1 ( S ( j m + 1 ) , S ( j m ) ) ≠ 0 , … , (d) the integral Tits quadratic form q C : Z ( I C ) → Z of C defined by the formula q C ( v ) = ∑ j ∈ I C s j 0 v j 2 − ∑ i , j ∈ I C s i j 1 v i v j is positive definite, where s j 0 = dim K End C S ( j ) , v ∈ Z ( I C ) and Z ( I C ) is the direct sum of I C copies of Z . In this case, we show that C is isomorphic to the (co)tensor coalgebra T F □ ( M ) associated to the Ext-species of C, where F is the direct sum of the division algebras F j = End C S ( j ) , M = ⊕ i , j ∈ I C M j i , and M j i = Hom F i ( Ext C 1 ( S ( i ) , S ( j ) ) , F i ) . We also describe the Auslander–Reiten quiver Γ ( C - comod ) and the structure of the category C - comod of left C-comodules of finite dimension.
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