Files
markitect-main/examples/supply-chain-vsm/output/mappings/market-structure-mappings.md
tegwick 574bb11db6 feat(example): add supply-chain-vsm composition demo (S3.5)
Demonstrates infospace composition: the Wealth of Nations infospace is
used as a discipline, applying Smith's economic framework as a lens to
analyse modern supply chain management concepts.

New example: examples/supply-chain-vsm/
- infospace.yaml binding WoN as discipline (../infospace-with-history)
- 3 source documents: coordination mechanisms, capital & inventory,
  market structure (~400 words each, original content)
- supply-chain-entity-schema-v1.0.md with WoN Concept required section
- won-mapping-schema-v1.0.md with Conceptual Continuity rating
- artifacts/won-reference/core-entities.md — 12 curated WoN entities
  for injection as discipline context
- 8 hand-crafted entity files demonstrating LLM output format
- 3 mapping files with full rationale and VSM inheritance chains
- Viable: YES (5/5 thresholds)

Key mappings demonstrated:
  Demand Signal          → Effectual Demand        (Strong, S2)
  Vendor-Managed Inventory → Division of Labour    (Strong, S1/S2)
  Just-in-Time Inventory → Circulating Capital     (Strong, S1/S3)
  Bullwhip Effect        → Natural Price           (Moderate, S2)
  Platform Intermediary  → Merchant Capital        (Strong, S2/S4)
  Monopsony Power        → Combination of Masters  (Strong, S3*)

Platform fix: entity_parser.py now recognises ## Supply Chain Domain
as a domain alias for ## Economic Domain, enabling composed infospaces
to use their own domain section name.

Tutorial §13 rewritten with real commands, real output, and the full
mapping table from the demo.

Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
2026-02-23 00:08:51 +01:00

4.6 KiB
Raw Blame History

WoN Mappings — Market Structure

Generated from: artifacts/sources/market-structure.md


Platform Intermediary → Merchant Capital

Supply Chain Entity

Platform Intermediary

WoN Entity

Merchant Capital

Mapping Rationale

Smith analyses merchant capital as capital employed to buy in one market and sell in another, earning profit from controlling access to exchange rather than from production. He notes that merchants are mobile — they have no necessary attachment to any productive system — which gives them structural leverage over producers who are geographically fixed. Platform intermediaries are a high-leverage form of the same structure: they control access to exchange (the matching infrastructure) without bearing inventory risk, earning profit from transaction fees and data rather than from buying and reselling. The merchant's physical mobility translates into the platform's structural mobility — the platform has no fixed attachment to any producer's fate, yet producers cannot exit without losing network access.

Conceptual Continuity

Strong — Platform intermediaries are the modern form of merchant capital: the mechanism (control of exchange access, leverage over producers, profit from intermediation rather than production) is identical. The innovation is eliminating inventory risk while retaining coordination power, which makes platforms a more concentrated and profitable form of merchant capital than Smith could have envisioned.

VSM Inheritance

Platform Intermediary inherits S2/S4 via Merchant Capital (coordination infrastructure with intelligence function — aggregating market data while intermediating transactions).


Monopsony Power → Combination of Masters

Supply Chain Entity

Monopsony Power

WoN Entity

Combination of Masters

Mapping Rationale

Smith describes the combination of masters as the coordinated exercise of employer power to suppress wages below the competitive level. He notes these combinations are common, rarely discussed publicly, and facilitated by the smaller number of employers relative to workers. Modern supply chain monopsony operates through the same structural mechanism: a concentrated buyer (or industry norm among buyers) facing atomistic suppliers systematically extracts terms — lower prices, extended payment, cost absorption — that suppliers cannot individually refuse without losing the customer. The power asymmetry (concentrated vs. atomistic; each party's outside options) is identical. Smith's analysis predicts the modern outcome: margin compression, underinvestment, and fragility on the supplier side.

Conceptual Continuity

Strong — Monopsony power in supply chains is Smith's combination of masters applied to the buyersupplier relationship rather than the employerworker relationship. The market structure (concentrated power facing fragmented supply of a factor) and the mechanism (systematic extraction below competitive returns) are the same.

VSM Inheritance

Monopsony Power inherits S3* via Combination of Masters (distortion of the S2 coordination signal through coordinated anti-competitive behaviour at the management boundary).


Single-Source Dependency → Monopoly in Trade

Supply Chain Entity

Single-Source Dependency

WoN Entity

Monopoly in Trade

Mapping Rationale

Smith argues that monopolists always charge the highest price buyers will bear, because no competitive alternative disciplines them. A single-source supplier during a supply disruption is a temporary monopolist: the buyer has no immediate alternative, demand for the component is inelastic in the short run, and the supplier can extract above-natural prices. Smith's account of monopoly — restricted supply, elevated price, distorted resource allocation — applies precisely to the disrupted single-source scenario. The difference is that single-source dependency produces episodic monopoly power (during disruptions) rather than Smith's continuous monopoly; but the mechanism and the welfare consequences are the same.

Conceptual Continuity

Moderate — The monopoly pricing mechanism is shared, but Smith's monopoly is a stable market structure while single-source dependency produces temporary monopoly only during disruptions. The strategic implications also differ: Smith focuses on restricting supply to maintain high prices, while single-source power is an inadvertent consequence of concentrated specialisation rather than deliberate supply restriction.

VSM Inheritance

Single-Source Dependency inherits S4/S5 via Monopoly in Trade (intelligence failure creating conditions for policy-level market distortion when disruption occurs).