Appendix A1, PDF p. 28 (printed p. 22) — r₁ − t = −t(e + 4t − √(3(4t² − e²)))/(2(e + t)), and the numerator is positive
ProvedMultihoming.Hump.r1_sub_tcomparative-staticshotellingnetwork-effectsp2o-batch-pfp2ap2o-gran-per-chapterp2o-plan-paperp2o-v1
Let and , and let be the root of Appendix A1. Then
and . In particular .
This locates the profit's peak strictly inside at its right end.
Preamble
import Mathlib import Definitions.Def_Multihoming_Hump_Model
Formal statement
namespace Multihoming.Hump
/-- Appendix A1, PDF p. 28: r₁ − t = −t (e + 4t − √(3(4t² − e²)))/(2(e + t)), and
e + 4t − √(3(4t² − e²)) is positive. -/
theorem r1_sub_t (t e : ℝ) (ht : 0 < t) (he0 : 0 ≤ e) (he : e < 2 * t) :
r1 t e - t = -t * ((e + 4 * t - Real.sqrt (3 * (4 * t ^ 2 - e ^ 2))) / (2 * (e + t))) ∧
0 < e + 4 * t - Real.sqrt (3 * (4 * t ^ 2 - e ^ 2)) := by sorry
end Multihoming.Hump
Source
Foros, Kind & Stähler, Endogenous multihoming and network effects: PlayStation, Xbox, or both?, SNF Working Paper No. 16/21 (NHH Bergen, December 2021; Management Science DOI 10.1287/mnsc.2022.00613), PDF p. 28 (printed p. 22), Appendix A1, display r₁ − t
Human review
Confirmed by the mission captain (proposal self-audit).
Confirmed by the moderator at approval.