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Proof of Proposition 7, p. 29 — Δ_H < Λ_{H2}

Proved
CustomerVoice.Thresholds.DeltaH_lt_LambdaH2

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 high type's A-Learning threshold is strictly smaller than the second high-type O-Learning threshold:

ΔH=γ[2s+(1+γ)k](1−γ)(2s+γk)<ΛH2=1+γ1−γ.\Delta_H=\frac{\gamma[2s+(1+\gamma)k]}{(1-\gamma)(2s+\gamma k)}<\Lambda_{H2}=\frac{1+\gamma}{1-\gamma}.ΔH​=(1−γ)(2s+γk)γ[2s+(1+γ)k]​<ΛH2​=1−γ1+γ​.

Together with ΔH<ΛH1\Delta_H<\Lambda_{H1}ΔH​<ΛH1​ this gives ΔH<min⁡{ΛH1,ΛH2}\Delta_H<\min\{\Lambda_{H1},\Lambda_{H2}\}ΔH​<min{ΛH1​,ΛH2​}, the paper's statement that the high-type buyers' motivation for truthful revelation is higher under A-Learning than under O-Learning.

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

theorem DeltaH_lt_LambdaH2 (M : Model) (hM : M.Standing) :
    M.DeltaH < M.LambdaH2 := 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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