Abstract. The paper studies quasilinear elliptic problems in the Sobolev spaces W 1,p (Ω), Ω ⊂ R N , with p = N , that is, the case of Pohozhaev-Trudinger-Moser inequality. Similarly to the case p < N where the loss of compactness in W 1,p (R N ) occurs due to dilation operators u → t (N −p)/p u(tx), t > 0, and can be accounted for in decompositions of the type of Struwe's "global compactness" and its later refinements, this paper presents a previously unknown group of isometric operators that leads to loss of compactness in W 1,N 0 over a ball in R N . We give a one-parameter scale of Hardy-Sobolev functionals, a "p = N "-counterpart of the Hölder interpolation scale, for p > N, between the Hardy functional |u| p |x| p dx and the Sobolev functional |u| pN/(N −mp) dx. Like in the case p < N, these functionals are invariant with respect to the dilation operators above, and the respective concentration-compactness argument yields existence of minimizers for W 1,N -norms under HardySobolev constraints.
Mathematics Subject Classification (2000). Primary 35J20, 35J35, 35J60; Secondary 46E35, 47J30, 58E05.