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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

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Monopsony Power

Definition

Market power held by a dominant buyer who faces many sellers, enabling the buyer to suppress prices, extend payment terms, and impose conditions below what competitive markets would support. In supply chains, monopsony is exercised by large retailers or manufacturers who represent a significant fraction of a supplier's revenue, giving them leverage to dictate terms the supplier cannot credibly refuse. The long-run consequence is supplier margin compression, underinvestment in quality, and supply fragility.

Source

Market Structure in Modern Supply Chains, §Monopsony and Buyer Power

Supply Chain Domain

Market Structure

VSM Assignment

S3* — Monopsony power is exercised through the management control layer: buyers set terms (pricing, payment, specification) that govern the operational relationship. The S3* (audit/control) analogy holds because the buyer uses its inspection and approval rights to enforce compliance with terms extracted through buyer power.

WoN Concept

Combination of Masters — Smith describes the combination of masters as the coordinated exercise of employer power to suppress wages below their competitive level. Monopsony power in modern supply chains operates through the same mechanism: a concentrated buyer (or buyers acting in parallel) systematically extracts value from fragmented suppliers, just as Smith's combination of masters extracted value from fragmented workers. The parallel is structural: in both cases, one side of the market is coordinated and the other is atomistic, enabling systematic suppression of returns.

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