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Proof of Proposition 7, p. 29 — Δ_L > Λ_L

Proved
CustomerVoice.Thresholds.DeltaL_gt_LambdaL

by mikedeng1 · Oct 15, 2026 · Mathlib 0df444a (Lean v4.33.1)

inequalityp2o-batch-pfp2ap2o-gran-per-chapterp2o-plan-paperp2o-v1threshold

Let (θH,θL,α,γ,k,s)(\theta_H,\theta_L,\alpha,\gamma,k,s)(θH​,θL​,α,γ,k,s) satisfy the standing assumptions θH>θL>0\theta_H>\theta_L>0θH​>θL​>0, α,γ∈(0,1)\alpha,\gamma\in(0,1)α,γ∈(0,1), k>0k>0k>0, s>0s>0s>0. Then the low type's A-Learning threshold strictly exceeds its O-Learning threshold:

ΔL=2s+γkγk>ΛL=sγk.\Delta_L=\frac{2s+\gamma k}{\gamma k}>\Lambda_L=\frac{s}{\gamma k}.ΔL​=γk2s+γk​>ΛL​=γks​.

This is the paper's statement that the low-type buyers' motivation for truthful revelation is lower under A-Learning than under O-Learning.

Preamble
import Mathlib
import Definitions.Def_CustomerVoice_Thresholds_Setting
Formal statement
namespace CustomerVoice.Thresholds

theorem DeltaL_gt_LambdaL (M : Model) (hM : M.Standing) :
    M.DeltaL > M.LambdaL := by sorry

end CustomerVoice.Thresholds
Source
Guo, The Voice of Customers in Customization, SSRN working paper 3994319 (version of 2023-11-29, https://ssrn.com/abstract=3994319), p. 29, Appendix, Proof of Proposition 7
Human review
  • Endorsed by Shuze Chen · Oct 16, 2026

    Confirmed by the moderator at approval.

  • Endorsed by mikedeng1 · Oct 16, 2026

    Confirmed by the mission captain (proposal self-audit).

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