Recognition Economics derives arrangements from the physical structure of morality and ethics. This report retains both parties' records and each proposed rewrite's effects. A numerical minimum is not by itself a moral recommendation. Physical moral harm requires the identified J-cost relation; consent requires the person's own authorization. Actual obligations require the underlying history and evidence.
2 claim(s) are recorded differently by the two parties. A who-owes-whom table carries one figure for each; the books carry two, and the model's balanced entries, cross postings and payments preserve their difference.
2 standing relationship(s) carry nothing and do not appear in a who-owes-whom table.
In this example, they change who a rewrite at fixed positions reaches: with them, Acme, Cole, Dunn are drawn in through a relationship that carried nothing; without them, nobody. The same table can therefore describe two networks whose rewrites affect different parties.
2 relationship(s) disagree. No sequence of legal moves (balanced entries, cross postings, payments) closes a gap in this bookkeeping model. Revaluation adjustments that close it sum to the gap; the interval retains both recorded amounts. Determining what is actually owed requires the accepted terms, performance and evidence. Matching records can both be mistaken.
| claim | creditor | creditor's record | debtor | debtor's record | gap | status | dispute interval |
|---|---|---|---|---|---|---|---|
| INV-1001 | Acme | 1,200 | Birch | 1,200 | 0 | matched | |
| INV-2002 | Birch | 500 | Cole | 450 | 50 | disagree | [450, 500] |
| INV-3003 | Cole | 800 | Acme | 800 | 0 | matched | |
| INV-4004 | Cole | 0 | Dunn | 0 | 0 | matched | |
| INV-5005 | Dunn | 0 | Acme | 0 | 0 | matched | |
| INV-6006 | Birch | 300 | Dunn | 300 | 0 | matched | |
| INV-7007 | Eton | 150 | Acme | 0 | 150 | one-sided record | [0, 150] |
Rests on: Gap conservation under the model's balanced entries, cross postings and payments; closing revaluation adjustments sum to the gap. PremiseLedger gap conservation
5 parties, 7 relationships. The books are not consistent.
| party | balance | net position | free accounts | free total | buffer identity |
|---|---|---|---|---|---|
| Acme | balanced | 400 | equity | -400 | holds |
| Birch | balanced | -400 | equity | 400 | holds |
| Cole | balanced | 350 | equity | -350 | holds |
| Dunn | balanced | -300 | equity | 300 | holds |
| Eton | balanced | 150 | equity | -150 | holds |
Rests on: Buffer identity: a balanced party's free total is minus its net. Genesis.freeTotal_eq_neg_ownNet
Computed on creditor records (proj); 2 relationship(s) disagree, so the debtor's records give a different network. Selected objective quadratic, amount reading, cycle space of dimension 3. The numerical proposal at fixed positions changes relationships above the reporting threshold. The solver reports convergence. Cost before 1,221,250, after 73,750. Circulation at the booked position: -954.5942, 1,165.6545, 158.1129.
| claim | booked | after rewrite | |
|---|---|---|---|
| INV-1001 | 1,200 | 200 | moved |
| INV-2002 | 500 | -175 | moved |
| INV-3003 | 800 | -25 | moved |
| INV-4004 | 0 | 150 | drawn in: carried nothing, now carries |
| INV-5005 | 0 | -175 | drawn in: carried nothing, now carries |
| INV-6006 | 300 | -25 | moved |
| INV-7007 | 150 | 150 |
Allocated incident charge at creditor share 0.5, and who the rewrite reaches through a previously resting relationship:
| party | charge | |
|---|---|---|
| Acme | 23,437.5 | reached |
| Birch | 17,812.5 | |
| Cole | 13,437.5 | reached |
| Dunn | 13,437.5 | reached |
| Eton | 5,625 |
Open lines (standing relationships carrying nothing): INV-4004, INV-5005. A who-owes-whom table omits these lines. Delete the open lines and the table is unchanged; the rewrite then reaches nobody through an open line instead of Acme, Cole, Dunn.
Rests on: A relationship carrying nothing is drawn in exactly when marginal costs circulate around a cycle it closes. PremiseLedger.exact_rewrite_charges_bystander
This table retains the recorded exposures while omitting standing lines with zero amounts and differences between the two records. It drops 2 open line(s) and every gap.
| creditor | debtor | amount |
|---|---|---|
| Acme | Birch | 1,200 |
| Birch | Cole | 500 |
| Cole | Acme | 800 |
| Birch | Dunn | 300 |
| Eton | Acme | 150 |
Rests on: An exposure functional takes the same value on two networks differing on who a rewrite reaches. Projection
Chart open over goods (free accounts present). Issuers detected: none. Sum of gaps: 200. Frozen parties: none.
Rests on: Closed over cash: payments are the only move; gaps sum to zero; an issuer with no free account has net zero. ClosedChart; CashClosed.issuer_net_zero