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# CORPUS-0012
## Reputation Loss Changes Future Arithmetic
### Status: Training Corpus Seed
### Layer: Layer_1--Worked_Examples
### Purpose: Teach that reputation loss does not rewrite the settled account of a completed venture, but can change the costs, access, and margins of future ventures
### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0012-reputation-loss-changes-future-arithmetic.md
---
## 0. Scenario
A trader sends oil from Ostia to Capua.
The venture produces coin profit.
However, the trader delivers late and handles the buyer poorly.
The completed venture remains profitable by arithmetic.
But reputation loss changes the conditions of future ventures.
---
## 1. Completed Venture Arithmetic
| Item | Value |
|---|---:|
| Sale value in Capua | 24 asses |
| Purchase price in Ostia | 10 asses |
| Movement and handling | 6 asses |
| Storage and incidental cost | 2 asses |
Total cost:
```text
10 + 6 + 2 = 18 asses
```
Immediate result:
```text
24 - 18 = 6 asses profit
```
The venture made 6 asses.
Reputation loss does not change that settled arithmetic.
---
## 2. Reputation Damage
The buyer expected delivery sooner.
The trader arrived late and blamed others instead of settling the matter cleanly.
The buyer paid, but now trusts the trader less.
Possible effects:
- buyer demands a lower price next time
- buyer refuses advance agreement
- seller hears of late delivery
- cart driver asks for coin upfront
- warehouse keeper stops extending easy terms
- information from Capua becomes slower or less reliable
The immediate venture remains profitable.
The next venture becomes harder.
---
## 3. Future Venture Before Reputation Loss
Before reputation damage, the trader expected:
| Item | Value |
|---|---:|
| Expected sale value | 24 asses |
| Purchase price | 10 asses |
| Transport cost | 6 asses |
| Other costs | 2 asses |
Expected result:
```text
24 - (10 + 6 + 2) = 6 asses profit
```
---
## 4. Future Venture After Reputation Loss
After reputation damage:
- buyer offers 22 asses instead of 24
- cart driver requires 2 extra asses upfront
- seller refuses delayed payment, reducing liquidity flexibility
New arithmetic:
| Item | Value |
|---|---:|
| Sale value | 22 asses |
| Purchase price | 10 asses |
| Transport cost | 8 asses |
| Other costs | 2 asses |
New result:
```text
22 - (10 + 8 + 2) = 2 asses profit
```
The same route still works, but margin falls from 6 asses to 2 asses.
Reputation loss became arithmetic through changed terms.
---
## 5. Harder Variant
If reputation damage is worse:
| Item | Value |
|---|---:|
| Sale value | 21 asses |
| Purchase price | 10 asses |
| Transport cost | 9 asses |
| Other costs | 3 asses |
Result:
```text
21 - (10 + 9 + 3) = 1 as loss
```
A route that was once profitable now fails.
The physical route did not change.
The actor's social terms changed.
---
## 6. Correct Model Behavior
The model should separate:
| Category | Meaning |
|---|---|
| settled arithmetic | result of completed venture |
| reputation effect | change in trust, access, or terms |
| future arithmetic | later costs and sale values altered by reputation |
| access condition | whether actors will still transact |
| credit condition | whether delayed settlement remains available |
Reputation is not merely narrative flavor.
It changes future numbers.
---
## 7. Incorrect Model Behavior
The model should not:
- subtract reputation loss from a completed coin result without a defined mechanism
- rewrite a profitable settled venture as unprofitable after the fact
- ignore reputation because it is not coin
- treat future terms as unchanged after trust damage
- assume reputation effects are vague and non-economic
- ignore access loss, higher costs, or worse prices
---
## 8. Layer-0 Concepts Used
This example uses:
- `CORPUS-0005-profit-is-sale-minus-total-cost`
- `CORPUS-0006-delay-is-economic-cost`
- `CORPUS-0009-liquidity-differs-from-wealth`
- `CORPUS-0010-credit-depends-on-trust`
- `CORPUS-0011-status-changes-access`
- `CORPUS-0012-every-venture-risks-loss`
- `CORPUS-0019-success-has-no-boundary-failure-has-a-hard-stop`
- `CORPUS-0020-posture-changes-by-audience`
---
## 9. Success Condition
If the model keeps the completed venture's arithmetic fixed while allowing reputation loss to change future costs, access, credit, and margins, this file is functioning correctly.