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Jul 24, 2013 at 5:17 comment added Peter Michor You decided to ignore the grade $k$ which exactly encodes your feeling that "all the tensor powers are already there". But in $\overline{T}\overline{T}(V)$ they are there multiple times; you then have 3 degrees and cannot reduce them to 2 correctly.
Jul 22, 2013 at 16:16 comment added Nevermind But as I said, the graded tensor power makes $\overline{T}(V)$ into a $\mathbb{Z}$-graded vector space by $\overline{T}(V)_j:=\oplus_{k}\oplus_{p_1,\ldots,p_k=j}V_{p_1}\otimes \cdots\otimes V_{p_k}$, where each $p_h\geq 1$.
Jul 22, 2013 at 16:06 comment added Nevermind And by the way: $\overline{T}$ is in addition a functor into the category of locally nilpotent graded coassociative coalgebras and there it is right adoint to the forgetful functor
Jul 22, 2013 at 15:52 history answered Peter Michor CC BY-SA 3.0