When does the law diminishing returns kick in?


As I go through these threads reading responses I will look at the systems from answer writers. Wow, some of you guys don't mess around. As a music lover and audio guy myself (since the late 60s) I can't help but be envious.
Although my system is modest, especially compared to some, I get a lot of enjoyment listening to music on it. It took a while and a lot of trial and error to get what seems right to me. But when looking at the super systems here it makes me wonder what I'm missing. With the exception of deeper bass, am I missing all that much? How much would I have to spend to hear real (worthwhile) improvement?
timrhu
So the new interpretation of the law is as follows - there is no law of diminishing returns.
The further I go, the more I separate the cost equation from the more interesting subject of how we measure sound quality. A certain expenditure buys a high quality system. Above that price point, a relatively small and sometimes even inexpensive change can make for a large perceived improvement. How can this be? Well, the ear quickly assimilates all prior improvements into a roll of the base line. The road ahead is mapped out with increasing clarity. At some point the perception of progress shifts to Zeno's paradox-- each step forward is logged as a percentage of the distance uncovered, not behind. Approaching goal the distances are very small yet the preception of progress is heightened. Thus if your system is 90% there, getting to 95% sounds like a 50% improvement. Looking at it any other way fails to explain the audiophile's basic psychology.
'Looking at it any other way fails to explain the audiophile's basic psychology.'

AMEN!
keep it simple. it's basic economics 101. each person has an optimal price to pay for a component. when you exceed that price, your returns have diminished , relative to the cost of the component.