I was going over a proof of Hall's theorem in my textbook (Diestel, 3rd edition), and there appears to be a mistake. Though, there's probably a higher chance that I'm mistaken about something. I would appreciate some input. Here's the theorem and proof presented.
I'm having trouble with the inequality part of the proof (indicated by the arrow).
Let's consider an edge $ab$. Then $G' = G - (a,b)$. Thus we've removed $a$ and $b$, and all their incident edges. Let us now pick a subset of $A - a$ and call it $S$. There are three kinds of $S$.
- A set that did not contain vertex $a$, and in which none of the neighbors of $S$ contained $b$ (except a ofcourse). In this case, $|N_{G'}(S)| = |N_G(S)|$.
- A set that did not contain vertex $a$, but the neighbor of one or more vertices of S contained $b$. In this case, $|N_{G'}(S)| \lt |N_G(S)|$.
- A set that contained vertex $a$, and the neighbors of one or more vertices of S contained b.
- A set thant contained vertex $a$, but none of the neighbors in $S$ contained $b$
2) Is the one I'm having trouble with at the moment. In this case, the inequality indicated in the proof doesn't hold since $|N_{G'}(S)|$ is less than $|N_G(S)|$.
Am I misunderstanding something here?


Be assured that the "Second proof" is correct. It is in fact the "Proof of the Book" for this theorem.
It is a fact that for any $S\subset A\setminus\{a\}$ the set $N_{G'}(S)$ of "acceptable partners" $y\in B\ $ is at most one person smaller than $N_G(S)$, insofar as only person $b\in B$ has been eliminated. (Note that you should not count some number of edges, but the number of persons acceptable to at least one $x\in S$.)
Since at the particular spot in the proof we have assumed $\bigl|N_G(S)\bigr|\geq|S|+1$ for all subsets $S\subsetneq A$ we may conclude that $$\bigl|N_{G'}(S)\bigr|\geq \bigl|N_G(S)\bigr|-1\geq(|S|+1)-1=|S|\ .$$