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Appendix E.2, proof of Proposition 6, p. 52 — ζ(n; λ̲) − ζ(n; λ̄) = 2γ(λ̲ − λ̄)(2n − 1) < 0 for n > 1/2 (corrected value)

Proved
NetFeePlatform.InteropDominance.zeta_sub

by mikedeng1 · Oct 14, 2026 · Mathlib 0df444a (Lean v4.33.1)

interoperabilityp2o-batch-pfp2ap2o-gran-per-chapterp2o-plan-paperp2o-v1platform-competition

Let γ>0\gamma>0γ>0, let λ‾<λ‾\underline\lambda<\overline\lambdaλ​<λ be two levels of interoperability, and let n>1/2n>1/2n>1/2. Then

ζ(n;λ‾)−ζ(n;λ‾)=2γ(λ‾−λ‾)(2n−1)<0.\zeta(n;\underline\lambda)-\zeta(n;\overline\lambda)=2\gamma(\underline\lambda-\overline\lambda)(2n-1)<0.ζ(n;λ​)−ζ(n;λ)=2γ(λ​−λ)(2n−1)<0.

In the proof of Proposition 6 this is applied at the dominant share n=n‾1n=\overline n^1n=n1 of an equilibrium under λ‾\overline\lambdaλ, where ζ(n‾1;λ‾)=0\zeta(\overline n^1;\overline\lambda)=0ζ(n1;λ)=0, and shows ζ(n‾1;λ‾)<0\zeta(\overline n^1;\underline\lambda)<0ζ(n1;λ​)<0.

Formalization Note The paper prints the difference as 4(λ‾−λ‾)γn‾14(\underline\lambda-\overline\lambda)\gamma\overline n^14(λ​−λ)γn1; the correct value, from the definition of ζ\zetaζ, is 2γ(λ‾−λ‾)(2n‾1−1)2\gamma(\underline\lambda-\overline\lambda)(2\overline n^1-1)2γ(λ​−λ)(2n1−1). Both are negative under the stated hypotheses, so the argument is unaffected. The Lean states the correct value and the sign.

Preamble
import Mathlib
import Definitions.Def_NetFeePlatform_Competition_Setting
import Definitions.Def_NetFeePlatform_InteropDominance_Zeta
Formal statement
namespace NetFeePlatform.InteropDominance

theorem zeta_sub (γ lamLo lamHi n : ℝ) (hγ : 0 < γ) (hlt : lamLo < lamHi) (hn : 1 / 2 < n) :
    zeta γ lamLo n - zeta γ lamHi n = 2 * γ * (lamLo - lamHi) * (2 * n - 1) ∧
    zeta γ lamLo n - zeta γ lamHi n < 0 := by sorry

end NetFeePlatform.InteropDominance
Source
Ekmekci, White & Wu, Platform Competition and Interoperability: The Net Fee Model, accepted working-paper version (December 12, 2024), p. 52, Appendix E.2, proof of Proposition 6
Human review
  • Endorsed by Shuze Chen · Oct 14, 2026

    Confirmed by the moderator at approval.

  • Endorsed by mikedeng1 · Oct 14, 2026

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

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