I'm reading a paper by Nakajima (Quiver Varieties and Tensor Products), and I'm having a hard time understanding his proof of Lemma 3.2. Essentially, we have two (quasi-projective) varieties, say $X$ and $Y$, that we would like to show are isomorphic. The proof uses the following argument:
(1) Construct a bijective morphism $f:X \to Y$.
(2) Show that $\mathrm{d}f: T_x(X) \to T_{f(x)}(Y)$ is an isomorphism for all $x \in X$ (where $T_x(X)$ is the tangent space of $X$ at $x$).
From (1) and (2), he concludes that $f$ is an isomorphism. My question is, how can one conclude that $f$ is an isomorphism from (1) and (2)? According to Joe Harris's Algebraic Geometry (specifically Theorem 14.9 and Corollary 14.10), a bijection $f:X \to Y$ that induces an isomorphism on the tangent spaces is an isomorphism if $f$ is finite or if $X$ and $Y$ are projective (this is in general false otherwise). In our setting, $X$ and $Y$ are not projective and it is not obvious (to me, at least) that the map constructed by the author is finite. Does anyone know what conditions the author is using to conclude that (1) and (2) $\implies$ $f$ is an isomorphism?
Example: $X=\{xy=0\}\sqcup \{x+y, x\ne 0\}$, consider the tautological map to $X\to Y\subset C^2$, $$ Y=\{xy(x+y)=0\}. $$ This is a bijection (to $Y$), isomorphic on Zariski tangent spaces (at every point), but not an isomorphism. I can also give an irreducible example, but I hope you see what is going on.
Edit: the right local condition I think is an induced isomorphism of completed local rings.