Marketing Efficiency and Price Formation Equation

Why Price Inflation Is Not Natural — It’s Structural Most people think inflation comes from production cost.But global supply chains show something else. A consistent empirical regularity observed across agricultural, industrial, and consumer-goods supply chains worldwide is that final consumer prices rise systematically with the number of intermediaries between producers and consumers. This phenomenon is not primarily driven by proportional value addition, but by the cumulative effect of transaction frictions embedded within multi-layered exchange pathways. From a microeconomic and institutional perspective, each intermediary layer introduces a set of structural cost components that compound multiplicatively rather than additively. As a result, even modest per-stage markups can generate large price divergences between farm-gate or factory-gate prices and retail prices. Please check the attachment for details