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Propositions 1 and 2, pp. 13–14 — with exogenous demand, dedicated has the shorter wait exactly when λr is below one threshold

Proved
CourierDispatch.Exogenous.propositions_1_2

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

on-demand-deliveryp2o-batch-pfp2ap2o-gran-per-chapterp2o-plan-paperp2o-v1thresholdwait-time

Let CB∈[0.58,0.59]C_B\in[0.58,0.59]CB​∈[0.58,0.59]. There is a constant a1a_1a1​ with 0<a1<340<a_1<\tfrac340<a1​<43​ such that for every service radius r>0r>0r>0 and every exogenous demand rate λ>0\lambda>0λ>0 with λr<34\lambda r<\tfrac34λr<43​ (that is, λ<μD\lambda<\mu_Dλ<μD​):

  1. WD(λ,μD,CD)<WB(λ,μB,CB)W_D(\lambda,\mu_D,C_D)<W_B(\lambda,\mu_B,C_B)WD​(λ,μD​,CD​)<WB​(λ,μB​,CB​) if and only if λr<a1\lambda r<a_1λr<a1​;
  2. WB(λ,μB,CB)<WD(λ,μD,CD)W_B(\lambda,\mu_B,C_B)<W_D(\lambda,\mu_D,C_D)WB​(λ,μB​,CB​)<WD​(λ,μD​,CD​) if and only if λr>a1\lambda r>a_1λr>a1​;
  3. for every inverse valuation c.d.f. F−1F^{-1}F−1, every potential-arrival parameter Λ>0\Lambda>0Λ>0 with λ≤Λr2\lambda\le\Lambda r^2λ≤Λr2, and every wait-cost rate c>0c>0c>0, with
V(λ,w)=λ[F−1(1−λΛr2)−c w],V(\lambda,w)=\lambda\Big[F^{-1}\Big(1-\frac{\lambda}{\Lambda r^2}\Big)-c\,w\Big],V(λ,w)=λ[F−1(1−Λr2λ​)−cw],

the dedicated revenue V(λ,WD)V(\lambda,W_D)V(λ,WD​) strictly exceeds the batch revenue V(λ,WB)V(\lambda,W_B)V(λ,WB​) iff λr<a1\lambda r<a_1λr<a1​, and the batch revenue strictly exceeds the dedicated one iff λr>a1\lambda r>a_1λr>a1​.

Here μD=34r\mu_D=\frac3{4r}μD​=4r3​, CD=98C_D=\frac98CD​=89​, μB=45π4r(32+15π)\mu_B=\frac{45\pi}{4r(32+15\pi)}μB​=4r(32+15π)45π​, and WD,WBW_D,W_BWD​,WB​ are the expected waits (5), (12). For CB=0.583C_B=0.583CB​=0.583 the paper reports a1≈0.5689a_1\approx 0.5689a1​≈0.5689. Proposition 1 is the threshold λex=a1/r\lambda_{ex}=a_1/rλex​=a1​/r in the demand rate at fixed radius, and Proposition 2 the threshold rex=a1/λr_{ex}=a_1/\lambdarex​=a1​/λ in the radius at fixed demand rate.

Formalization Note lam is λ\lambdaλ. One constant a1a_1a1​ serves all rrr and λ\lambdaλ, as in the paper's proof. The range λr<3/4\lambda r<3/4λr<3/4 is the stability range of dedicated delivery (batch is then stable as well); beyond it only batch is defined and the paper makes no comparison. The revenue clauses include the model's 0<Λ0<\Lambda0<Λ and λ≤Λr2\lambda\le\Lambda r^2λ≤Λr2 from p. 8. F−1F^{-1}F−1 is represented by an arbitrary function Q; its properties cancel from equal-demand revenue comparisons. CBC_BCB​ ranges over the bracket [0.58,0.59][0.58,0.59][0.58,0.59] instead of the paper's numerical value 0.5830.5830.583.

Preamble
import Mathlib
import Definitions.Def_CourierDispatch_Exogenous_Setting
Formal statement
namespace CourierDispatch.Exogenous

/-- Propositions 1 and 2, pp. 13–14, in their common form (Online Appendix p. 1): one constant
`a₁ ∈ (0, 3/4)` such that, for every radius `r > 0` and demand rate `λ > 0` with `λ r < 3/4`,
dedicated has the strictly shorter expected wait (and strictly higher revenue) iff `λ r < a₁`, and
batch does iff `λ r > a₁`. -/
theorem propositions_1_2 (CB : ℝ) (hCB : CBRange CB) :
    ∃ a₁ : ℝ, 0 < a₁ ∧ a₁ < TD ∧
      ∀ r lam : ℝ, 0 < r → 0 < lam → lam * r < TD →
        (WD lam (muD r) CD < WB r lam (muB r) CB ↔ lam * r < a₁) ∧
        (WB r lam (muB r) CB < WD lam (muD r) CD ↔ a₁ < lam * r) ∧
        (∀ (Q : ℝ → ℝ) (Lam c : ℝ), 0 < Lam → lam ≤ Lam * r ^ 2 → 0 < c →
          (V Q Lam r c lam (WB r lam (muB r) CB) < V Q Lam r c lam (WD lam (muD r) CD) ↔
            lam * r < a₁) ∧
          (V Q Lam r c lam (WD lam (muD r) CD) < V Q Lam r c lam (WB r lam (muB r) CB) ↔
            a₁ < lam * r)) := by sorry

end CourierDispatch.Exogenous
Source
Chen, Hu, Courier Dispatch in On-Demand Delivery, SSRN 3675063 (version of 2022-09-21), pp. 13–14, Propositions 1 and 2; Online Appendix p. 1, proof of Propositions 1 and 2
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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