It's actually market determined with extra steps as these rules are determined by the people who are the market. In Switzerland its actually significantly more direct than the rest of the world.
Instead of supply/demand, capital availability and information disparity the price is determined by voting on it. A way to overcome the tragedy of the commons.
Except that the voter base skews heavily to the non-working elderly and also excludes all the immigrants who might be quite happy to work for "low" Swiss pay.
Voting on prices is not a free market. It's something entirely different.