Layers in the market price
This page analyzes only the market model. It shows how the final price of basic resources is composed within it. The analysis of the Mycelium model is on a separate page.
When we see a price, we assume it is the price of the thing. In fact it is the price of the thing plus everything that happened between production and payment.
Example: housing in the market model
| Layer | Approximate share | Basis for the estimate |
|---|---|---|
| Materials and labour | 35–45% | Construction costs relative to market price |
| Land speculation | 20–30% | Land price index relative to inflation |
| Financial intermediation | 15–20% | Interest, fees, insurance |
| Agency and legal intermediation | 8–12% | Commissions, notary fees |
| Marketing and branding | 3–6% | Advertising and positioning costs |
Only the first row is housing production. The remaining ranges represent layers that exist only in the market model.
Other resources in the market model
| Resource | Production component | Remaining layers | Basis |
|---|---|---|---|
| Food (monthly basket) | 35–45% | 55–65% | Difference farm-gate price / retail price |
| Energy (kWh) | 30–40% | 60–70% | Production cost / final price |
| Transport (monthly) | 25–35% | 65–75% | Fuel and maintenance / total costs |
| Health (annual) | 30–40% | 60–70% | Medical service / administrative costs |
What this analysis means
The layers in price are not a mistake. They are the logic of a model that distributes through the market. This means that market price is not the lower limit of what is possible.
The question is not "is it possible to go lower", but "what changes when these layers are not present".
Analysis of the Mycelium model
A separate page presents the measurements of the Mycelium model – the decentralized answer to centralized programs such as Horizon Europe.