Example 1(c)(iii) summation: ex ante profits add to (vbar/16)(1+k)(2-k)
ProvedChatterjeeSamuelson.UniformEfficiency.total_profit_sum_identityThe two ex ante profit formulas from Examples 1(c)(i),(ii) add to the total (vbar/16)(1+k)(2-k); a pure ring identity.
Preamble
import Mathlib open Set
Formal statement
namespace ChatterjeeSamuelson.UniformEfficiency
/-- Example 1(c)(iii), summation part (Chatterjee & Samuelson, *Bargaining under
Incomplete Information*, Oper. Res. 31(5) 1983, §3, p. 842 [PDF 8]: "The sum of the
parties' profits is π_s + π_b = (v̄/16)(1 + k)(2 − k)").
With π_s(k) = (v̄/48)(2 − k)²(1 + k) and π_b(k) = (v̄/48)(1 + k)²(2 − k)
(Examples 1(c)(i),(ii)), the sum collapses: (2 − k)²(1 + k) + (1 + k)²(2 − k) =
3(1 + k)(2 − k), so the sum is (v̄/16)(1 + k)(2 − k). -/
theorem total_profit_sum_identity (k vbar : ℝ) (hk0 : 0 ≤ k) (hk1 : k ≤ 1)
(hv : 0 < vbar) :
vbar / 48 * (2 - k) ^ 2 * (1 + k) + vbar / 48 * (1 + k) ^ 2 * (2 - k) =
vbar / 16 * (1 + k) * (2 - k) := by sorry
end ChatterjeeSamuelson.UniformEfficiency