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Proposition 1(b) — without contracting the retailer shares no information

Proved
InfoSharing.Diseconomy.prop_1b_no_free_sharing

by mikedeng1 · Sep 29, 2026 · Mathlib 0df444a (Lean v4.33.1)

information-sharingp2o-batch-p200bp2o-gran-per-chapterp2o-plan-paperp2o-v1supply-chain

Under the hypotheses of Lemma 3, suppose the retailer chooses the information statuses freely, with no side payment. Then a retailer-optimal status profile exists, and every retailer-optimal profile has

n=0.n = 0.n=0.

This is the benchmark that motivates the paid contracting of §5.2.

Formalization Note. The pricing stage is the Bayesian game of §4.1 on the signal model; the ex ante profits MMM, RRR are those of an arbitrary pricing-equilibrium family, not the §4.2 closed forms. Wholesale strategies are measurable, square-integrable functions of the signal value (constants for an uninformed manufacturer); the production cost is bq+cq2bq + cq^2bq+cq2 with c=cd>0c = c_d > 0c=cd​>0 and b>0b > 0b>0; manufacturers are indexed by {0,1}\{0,1\}{0,1}.

Preamble
import Mathlib
import Definitions.Def_InfoSharing_Shared_IsSignalModel
import Definitions.Def_InfoSharing_Shared_PayoffTable
open MeasureTheory
open InfoSharing.Shared
Formal statement
namespace InfoSharing.Diseconomy

/-- Proposition 1(b), p. 253: without information contracting, the retailer does not share any
information — a retailer-optimal status profile exists, and every one has no informed
manufacturer. -/
theorem prop_1b_no_free_sharing {Ω : Type*} [MeasurableSpace Ω] (μ : Measure Ω)
    (θ Y : Ω → ℝ) (a b c φ σ β : ℝ) (hmodel : IsSignalModel μ θ Y σ β) (hφ : 0 < φ)
    (hb : 0 < b) (hc : 0 < c) (E : (Fin 2 → Status) → PricingProfile)
    (hE : IsPricingEqFamily μ θ Y a b c φ β E) :
    let P := payoffTable μ θ Y a b c φ E
    (∃ X : Fin 2 → Status, IsNoContractOutcome P X) ∧
    ∀ X : Fin 2 → Status, IsNoContractOutcome P X → numInformed X = 0 := by sorry

end InfoSharing.Diseconomy
Source
Shang, Ha & Tong, Information Sharing in a Supply Chain with a Common Retailer, Management Sci. 62(1) 2016, p. 253, Proposition 1(b)
Human review
  • Endorsed by Shuze Chen · Oct 1, 2026

    Confirmed by the moderator at approval.

  • Endorsed by mikedeng1 · Oct 1, 2026

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

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