Given:
1. Function $u(x)$ is infinitely differentiable and $\lambda \in \Bbb{R}$
2. Identity ①: $u(x)= \lambda \cdot u\left(\dfrac x2\right)$.
Find all $\lambda$, for which ① is true for all x in R.
Could you kindly check the solution and point out where it is wrong or unclear? My assumption was that all $\lambda$ are of a $2^n$ kind where $\space n \in \{\Bbb{Z^+} \cup 0\}$.
Here is an attempt for a solution so far: If $u(x)=\lambda u\left(\dfrac{x}{2}\right)$ then \begin{align} u(x)& = \lambda u\left(\frac{x}{2}\right)\\ \lambda u\left(\frac{x}{2}\right) & = \lambda ^2 u\left(\frac{x}{4}\right)\\ \lambda ^2 u\left(\frac{x}{4}\right) & = \lambda ^3 u\left(\frac{x}{8}\right)\\ &\ \ \vdots\\ \lambda ^{n-1} u\left(\frac{x}{2^{n-1}}\right) & = \lambda ^n u\left(\frac{x}{2^n}\right)\\ \implies u(x) &= \lambda ^n u\left(\frac{x}{2^n}\right) \tag*{②} \end{align} Now consider derivatives: \begin{align} u'(x)& = \frac{\lambda}{2} u'(\frac{x}{2})\\ u''(x)& = \frac{\lambda}{2^2} u''(\frac{x}{2})\\ u'''(x)& = \frac{\lambda}{2^3} u'''(\frac{x}{2})\\ & ...\\ u^{(n)}(x)& = \frac{\lambda}{2^n} u^{(n)} (\frac{x}{2^n})\\ \implies u^{(n)}(x)&= \left(\frac{\lambda}{2}\right)^n \space u^{(n)} \left(\frac{x}{2^n}\right) \tag*{③}\\ \end{align} which we come to after repeating the last equation similarly to ②.
$\lambda=1$ from ② implies $u(x)=a$ for $a \in \Bbb{R}$, and $|\lambda| < 1$ from ② implies $u(x) \to 0$ and thus $u(x) = 0$ for all $x$. (Is this line correct?)
I am a bit lost with the logic in the line below:
$u(0) \ne 0$, $\dfrac{u(x)}{\lambda^n} \to u(0) $ when $|\lambda| > 1 \implies $, $\dfrac{u(x)}{\lambda^n} \to 0 \quad$ contradicts $\quad u(0) \ne 0$.
now we have:
$u(0) = u'(0) = u''(0) = \cdots = u^{(n+1)} = 0\implies$ using Taylor for $u(0)=0$
$u(x) = xu'(0)+O(x^2)$
$u\left(\frac{x}{2^n}\right) = x\frac{u'(0)}{2^n} + O\left(\frac{x^2}{4^n}\right)$ by using ②
$u(x) =\lambda^n\left(x\frac{u'(0)}{2^n}+O\left(\frac{x^2}{4^n}\right)\right)$
$u(x)=\left(\frac{\lambda}{2}\right)^n xu'(0) + O\left(x^2\left(\frac{\lambda}{4}\right)^n\right)$.
in this equation
now let us apply $|\lambda| < 2 \implies u(x) \to 0$
$|\lambda| > 2 \implies u(x) \to \infty$.
$\therefore \lambda = 2$.
finally, applying the above procedure to the $(n)^{th}$ derivative of $u(x)$ and using ③
$u^{(n)}(x)=\left(\frac{\lambda}{2^n}\right)^n x\left(u^{(n+1)}(0)\right) + O\left(x^2\left(\frac{\lambda}{4^n}\right)^n\right)$.
we obtain that the $\lambda$ are all of a $2^n$ kind
Please feel free to point out the mistakes and\or missing parts.
P.S. If someone is interested there is also a more generalized version of this question on $K$ dimensions.