Potential method ($\Phi (D)$)

The potential method assigns a number $\Phi (D)$ to each state $D$ of a data structure. Let $D_i$ be the state after operation $i$, ${\Phi }_i=\Phi (D_i)$, and $c_i$ its actual cost. Its amortized cost is the actual cost plus the change in potential. Summing and cancelling adjacent potentials gives a telescoping sum:If ${\Phi }_0=0$ and every reachable ${\Phi }_i\ge 0$, the sum of amortized costs bounds the actual total for every prefix. A nonzero initial potential contributes the explicit additive term ${\Phi }_0$. Potential is proof bookkeeping; the algorithm need not store it.^[ref]

For dynamic array doubling, chooseThe potential method now starts at $\Phi (0,1)=0$. After every nonempty reachable state, $C<2n$, so the maximum equals $2n-C$. There are just three cases for append:

For every $n\ge 1$, the total charge is $2+3(n-1)=3n-1$, and the telescoping sum provesThis agrees exactly with $T(n)=n+C_n-1$. The unmodified choice $2n-C$ has initial value $-1$, so calling it nonnegative at the empty state would be incorrect. It also works if that initial constant is retained in the identity; alternatively, $2n-C+1$ starts at zero and is nonnegative on these reachable states. The maximum above keeps a literal nonnegative credit balance from the beginning. The proof covers append alone; allowing reserve or arbitrary deletion changes the reachable states and requires a new argument.

In the potential method, an operation's amortized cost is ${\hat{c}}_i=c_i+{\Phi }_i-{\Phi }_{i-1}$. It can exceed or fall below its actual cost $c_i$. The endpoint potentials determine how the total charge compares with the total actual cost.