Episode 05 defined the markets worth building into. This episode defines what to avoid.

Some markets attract attention because they appear large, active, and profitable. Activity does not equal efficiency. Scale does not equal opportunity. The most dangerous markets for an autonomous builder aren't those that lack demand — they're those with Systemic Resistance: a structural state where legal, social, or creative requirements mandate human intervention, regardless of how capable the technology becomes.

This episode develops the foundational distinction between Accidental Inefficiency (a market inefficient because it hasn't yet been reconstructed) and Required Inefficiency (a market inefficient because a permanent floor — regulatory, judgment-based, or transaction-frequency — makes reconstruction impossible). It maps Systemic Resistance's three disqualifying forms, including a critical nuance: not all regulated markets fail this test. And it names the false positive — markets that look reconstructable but are serving customers who value the relationship itself, not the outcome it delivers.

Some markets are not broken. They are simply human by design.

Concepts introduced: Systemic Resistance, Required Inefficiency.

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Linked memo: arcoventure.studio/blog/what-not-to-build
Paired episode: arcoventure.studio/blog/markets-that-work (Episode 05)
Arco Lexicon: arcoventure.studio/lexicon