I have a task that I think reduces to proving that $f$ is a contraction mapping. We know that $\forall_x|f^\prime(x)|<1$. Therefore if I could prove that $|f^\prime|<1\implies|f(x)-f(y)|<|x-y|$ then I think the task would be solved.
I feel this property does hold and that it is also somewhat obvious. Unfortunately, saying that something is obvious is obviously not a valid proof.
I have feeling proving this belongs to an elementary course on analysis, but it is somehow surprising how much have I forgotten from this course... How to prove this property and does it even hold?
Suppose that $|f'(x)|<1 ~\forall x \in (a,b).$
SIMPLER PROOF (thanks to BigbearZzz)
Consider $y<x\in [a, b]$.
By the mean value theorem, there exists a number $c \in (y,x)$:
$$f'(c) = \frac{f(x)-f(y)}{x-y} \Rightarrow \\ f(x)-f(y) = (x-y)f'(c) \Rightarrow\\ |f(x)-f(y)| = |x-y||f'(c)|.$$
Since $|f'(c)| <1 $, then:
$$|f(x)-f(y)| = |x-y||f'(c)| < |x-y| \Rightarrow \\ |f(x)-f(y)| < |x-y|.$$
OLD PROOF
Consider $y<x\in [a, b]$. Moreover, consider the function $g(x) = x$ (continuous and differentiable everywhere).
By the Cauchy's mean value theorem, there exists a number $c \in (y,x)$:
$$\left(f(x)-f(y)\right)g'(c) = \left(g(x)-g(y)\right)f'(c) \Rightarrow\\ \left(f(x)-f(y)\right) = \left(x-y\right)f'(c) \Rightarrow \\ |f(x)-f(y)| = |x-y||f'(c)|.$$
Since $|f'(c)| <1 $, then:
$$|f(x)-f(y)| = |x-y||f'(c)| < |x-y| \Rightarrow \\ |f(x)-f(y)| < |x-y|.$$