diff --git a/docs/training/corpus/Layer_2--Uncertainty/CORPUS-0002-conflicting-reports.md b/docs/training/corpus/Layer_2--Uncertainty/CORPUS-0002-conflicting-reports.md new file mode 100644 index 0000000..6ca8ed6 --- /dev/null +++ b/docs/training/corpus/Layer_2--Uncertainty/CORPUS-0002-conflicting-reports.md @@ -0,0 +1,182 @@ +# CORPUS-0002 +## Conflicting Reports +### Status: Training Corpus Seed +### Layer: Layer_2--Uncertainty +### Purpose: Teach that two reports about the same market can disagree, and that disagreement must be evaluated rather than averaged blindly +### Repository Path: docs/training/corpus/Layer_2--Uncertainty/CORPUS-0002-conflicting-reports.md + +--- + +## 0. Scenario + +A trader in Ostia hears two different reports about the price of oil in Capua. + +One report says the price is high. + +Another report says the price has already fallen. + +Both reports may contain some truth. + +The trader must compare source, age, motive, and evidence before acting. + +--- + +## 1. Reports Received + +### Report A + +A muleteer says: + +> Oil sold in Capua for 22 asses. + +Report age: three days. + +### Report B + +A warehouse clerk says: + +> Buyers in Capua are no longer paying more than 16 asses. + +Report age: one day. + +The reports conflict. + +The model must not simply choose the higher number because it creates profit, or the lower number because it seems safer. + +--- + +## 2. Known Facts + +| Fact | Value | +|---|---| +| Origin | Ostia | +| Destination | Capua | +| Good | oil | +| Report A price | 22 asses | +| Report A age | 3 days | +| Report A source | muleteer | +| Report B price | 16 asses | +| Report B age | 1 day | +| Report B source | warehouse clerk | +| Current true price | unknown | + +--- + +## 3. Possible Explanations + +The reports may conflict because: + +- Report A is true but stale +- Report B is newer and more accurate +- Report A was an exceptional sale to one urgent buyer +- Report B reflects lower-quality oil +- one source repeated hearsay +- one source has reason to influence the trader +- both reports are true for different buyers +- price changed between the two reports + +Conflict does not mean one report is worthless. + +It means the trader must identify what each report actually describes. + +--- + +## 4. Incorrect Model Behavior + +The model should not: + +- average the prices without reason +- choose the report that makes the venture profitable +- choose the newest report automatically +- ignore source motive +- ignore quality differences +- assume all buyers in Capua pay one price +- collapse conflicting reports into simple truth/falsehood + +--- + +## 5. Correct Model Behavior + +The model should evaluate: + +| Question | Why It Matters | +|---|---| +| Which report is newer? | newer information may reflect current conditions | +| Which source observed directly? | witnessed sale is stronger than repeated talk | +| Which source has motive? | self-interest may distort report | +| What quality of oil was priced? | different quality may explain different prices | +| Was the price general or exceptional? | one urgent buyer does not define the whole market | +| Has supply changed? | new shipment may lower price | +| Who else has heard the report? | shared knowledge changes opportunity | + +--- + +## 6. Decision Example + +The trader calculates expected cost at 16 asses. + +If Report A is current: + +```text +sale value = 22 asses +total cost = 16 asses +result = 6 asses profit +``` + +If Report B is current: + +```text +sale value = 16 asses +total cost = 16 asses +result = 0 profit +``` + +If the true price has fallen below both reports: + +```text +sale value = 14 asses +total cost = 16 asses +result = 2 asses loss +``` + +The decision depends on confidence, not arithmetic alone. + +Arithmetic resolves the final result after the true sale price is known. + +--- + +## 7. Useful Action Under Conflict + +The trader may: + +- seek a third report +- send a runner +- reduce cargo size +- negotiate a lower purchase price +- reserve cart space conditionally +- wait and risk losing opportunity +- act quickly and accept information risk + +Conflicting reports do not require paralysis. + +They require adjusted commitment. + +--- + +## 8. Layer-0 And Layer-1 Concepts Used + +This example uses: + +- `Layer_0/CORPUS-0002-goods-have-local-prices` +- `Layer_0/CORPUS-0007-information-arrives-unevenly` +- `Layer_0/CORPUS-0008-rumor-is-uncertain-information` +- `Layer_0/CORPUS-0012-every-venture-risks-loss` +- `Layer_1/CORPUS-0003-arithmetic-resolves-the-venture` +- `Layer_1/CORPUS-0005-rumor-before-confirmed-price` +- `Layer_2/CORPUS-0001-stale-price-report` + +--- + +## 9. Success Condition + +If the model sees two conflicting reports and evaluates source, age, motive, quality, and scope before deciding how much confidence to place in either, this file is functioning correctly.