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otivm/docs/training/corpus/Layer_2--Uncertainty/CORPUS-0005-hidden-true-state-vs-known-state.chunked.md
2026-04-30 15:09:22 -04:00

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CORPUS-0005

Hidden True State Versus Known State

Status: Training Corpus Seed

Layer: Layer_2--Uncertainty

Purpose: Teach that the simulation may contain a true state that the actor does not fully know

Repository Path: docs/training/corpus/Layer_2--Uncertainty/CORPUS-0005-hidden-true-state-vs-known-state.md


0. Scenario

A trader in Ostia considers sending oil to Capua.

The simulation has a true current price in Capua.

The trader does not know that true price.

He only knows reports, signals, memories, and claims.

The true state and the known state are not the same.


1. Hidden True State

The simulation may hold:

Hidden True State Value
Current Capua oil price 17 asses
Buyer urgency low
Rival shipment arrival already arrived
Available cart space limited
Warehouse capacity tight

These values exist in the world whether the trader knows them or not.


2. Actor Known State

The trader may know only:

Actor Known State Value
Reported Capua oil price 22 asses
Report age three days
Report source muleteer
Rival shipment unknown
Cart availability not yet checked
Warehouse capacity rumor only

The actor is not acting on the hidden true state.

He is acting on perceived state.


3. Why The Difference Matters

A trader can make a rational decision from his known state and still lose because the hidden true state differs.

Example:

Known state suggests:

expected sale price = 22 asses
expected total cost = 16 asses
expected profit = 6 asses

Hidden true state resolves as:

actual sale price = 17 asses
actual total cost = 16 asses
actual profit = 1 as

The decision may have been reasonable.

The outcome is still smaller because the true state differed.



0. Scenario

A trader in Ostia considers sending oil to Capua.

The simulation has a true current price in Capua.

The trader does not know that true price.

He only knows reports, signals, memories, and claims.

The true state and the known state are not the same.


1. Hidden True State

The simulation may hold:

Hidden True State Value
Current Capua oil price 17 asses
Buyer urgency low
Rival shipment arrival already arrived
Available cart space limited
Warehouse capacity tight

These values exist in the world whether the trader knows them or not.


2. Actor Known State

The trader may know only:

Actor Known State Value
Reported Capua oil price 22 asses
Report age three days
Report source muleteer
Rival shipment unknown
Cart availability not yet checked
Warehouse capacity rumor only

The actor is not acting on the hidden true state.

He is acting on perceived state.


4. Incorrect Model Behavior

The model should not:

  • assume the actor knows the simulation's true state
  • judge the actor's decision only by the final outcome
  • expose hidden values directly in dialogue
  • collapse report, belief, and truth into one value
  • treat wrong belief as irrational when evidence was limited
  • treat hidden true state as player-facing knowledge

5. Correct Model Behavior

The model should separate:

Category Meaning
true_state what is actually true in simulation
perceived_state what the actor believes or estimates
known_evidence reports, signals, records, observations
confidence how strongly actor should trust perceived state
action what actor chooses from perceived state
outcome what occurs when action meets true state

The actor acts from perceived state.

The world resolves from true state.


6. Example Resolution

The trader sends oil because the perceived state shows opportunity.

Later, the sale reveals the current Capua price was lower than reported.

Result:

perceived opportunity: strong
decision quality from known evidence: reasonable
final arithmetic: small profit
lesson: perception and truth differed

The model should not call the trader foolish merely because the hidden state was unfavorable.


7. Simulation Use

This principle supports:

  • hidden scenario states
  • partial observability
  • confidence tags
  • rumor systems
  • actor perception
  • delayed confirmation
  • fair failure
  • learning from outcome

A good simulation can punish a decision without making the decision stupid.


8. Layer-0 And Layer-1 Concepts Used

This example uses:

  • 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
  • Layer_2/CORPUS-0002-conflicting-reports

9. Success Condition

If the model can distinguish what is true in the simulation from what the actor knows, believes, or can reasonably infer, this file is functioning correctly.