diff --git a/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0011-round-trip-cart-value.md b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0011-round-trip-cart-value.md new file mode 100644 index 0000000..e5048e2 --- /dev/null +++ b/docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0011-round-trip-cart-value.md @@ -0,0 +1,236 @@ +# CORPUS-0011 +## Round-Trip Cart Value +### Status: Training Corpus Seed +### Layer: Layer_1--Worked_Examples +### Purpose: Teach that transport capacity may create value in both directions, and that a route should not always be evaluated as a one-way movement +### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0011-round-trip-cart-value.md + +--- + +## 0. Scenario + +A trader in Ostia wants to send goods to Capua. + +A cart from Capua has already arrived in Ostia carrying raw material. + +The cart must return to Capua. + +If the trader can load the return trip, the cart owner avoids travelling empty, and the trader may obtain better terms. + +The same physical journey can carry value in both directions. + +--- + +## 1. One-Way Assumption + +A weak model may treat transport as a simple one-way purchase: + +```text +Ostia -> Capua cart hire = 10 asses +``` + +If the trader must pay the whole hire, the cost may erase profit. + +But if the cart already needs to return to Capua, the trader may only need to pay for unused return capacity. + +The cart's prior movement matters. + +--- + +## 2. Known Facts + +| Fact | Value | +|---|---:| +| Cart origin | Capua | +| Cart current location | Ostia | +| Cart must return to Capua | yes | +| Normal one-way hire Ostia -> Capua | 10 asses | +| Reduced return-leg rate | 5 asses | +| Trader's cargo value in Ostia | 20 asses | +| Expected sale value in Capua | 32 asses | +| Other handling costs | 3 asses | + +--- + +## 3. One-Way Calculation + +If the trader pays full one-way hire: + +```text +purchase value: 20 asses +cart hire: 10 asses +other handling: 3 asses +------------------------------ +total cost: 33 asses +sale value: 32 asses +result: 1 as loss +``` + +The venture fails by arithmetic. + +--- + +## 4. Return-Leg Calculation + +If the trader uses the cart's required return trip: + +```text +purchase value: 20 asses +return-leg rate: 5 asses +other handling: 3 asses +------------------------------ +total cost: 28 asses +sale value: 32 asses +result: 4 asses profit +``` + +The same cargo and destination become viable because transport capacity was already moving. + +--- + +## 5. Why The Cart Owner Accepts + +The cart owner may accept the reduced return-leg rate because: + +- the cart must return to Capua anyway +- empty return earns nothing +- the load offsets animal feed and driver time +- the trader pays promptly +- the trader may offer repeat business +- the cargo is easy to handle + +The reduced rate is not generosity. + +It is shared use of existing movement. + +--- + +## 6. Round-Trip Exchange Variant + +The arrangement may include value in both directions: + +### Capua -> Ostia + +The cart brings: + +- raw timber +- wool +- charcoal +- agricultural goods +- workshop material + +### Ostia -> Capua + +The cart returns with: + +- oil +- imported goods +- tools +- household supplies +- finished stock +- letters or documents + +Each leg may serve a different party. + +The trader may profit not by owning the cart, but by understanding that the cart should not return empty. + +--- + +## 7. Household Supply Variant + +The return cargo may not all be market cargo. + +A Capua cart owner may ask to carry supplies for his household: + +- oil +- fish sauce +- cloth +- tools +- small luxury items +- medicines or prepared goods + +These goods may partly settle the transport agreement. + +This creates a mixed exchange: + +```text +cash payment ++ goods carried for household use ++ future hauling preference +``` + +The model should not treat household supply as irrelevant. + +It can be part of the transport bargain. + +--- + +## 8. Risks Of Linked Legs + +A round-trip arrangement can fail because either leg fails. + +Risk examples: + +- inbound cargo arrives late +- cart needs repair before return +- animals are tired +- driver changes terms after arrival +- outbound cargo is not ready +- return cargo is heavier than expected +- goods for household use are disputed in value +- delay on first leg destroys profit on second leg + +A round-trip plan may reduce cost, but it increases dependency between events. + +--- + +## 9. Correct Model Behavior + +The model should ask: + +- does the cart need to return anyway? +- is return capacity empty? +- who controls the cart? +- what did the cart carry inbound? +- what can it carry outbound? +- does return cargo reduce effective transport cost? +- are cash, goods, and future obligations combined? +- what risks link the two legs? + +Transport is not only a price. + +It is moving capacity across time and direction. + +--- + +## 10. Incorrect Model Behavior + +The model should not: + +- treat every cart hire as isolated one-way cost +- ignore why the cart is already in Ostia +- ignore empty return capacity +- ignore household supply as value +- assume reduced rate is unexplained discount +- ignore linked-leg risk +- calculate each leg without considering the whole movement + +--- + +## 11. Layer-0 Concepts Used + +This example uses: + +- `CORPUS-0001-trade-requires-two-locations` +- `CORPUS-0004-cost-includes-more-than-purchase-price` +- `CORPUS-0005-profit-is-sale-minus-total-cost` +- `CORPUS-0006-delay-is-economic-cost` +- `CORPUS-0009-liquidity-differs-from-wealth` +- `CORPUS-0013-non-coin-settlement-exists` +- `CORPUS-0018-rivalry-changes-conditions` + +--- + +## 12. Success Condition + +If the model sees a cart moving between two cities and asks whether both directions can carry value before calculating transport cost, this file is functioning correctly.