This paper is concerned with the study of envelope theorems for finite choice sets. More specifically, we consider the problem of differentiability of the value function arising out of the maximization of a parametrized objective function, when the set of alternatives is non-empty and finite. The parameter is confined to the closed interval [0,1] and for each alternative, the objective function is assumed to be a continuous function of the parameter.
Citation
WITS University, December 2003