The Law of Accelerating Returns

+1

There is virtually no end in improvement. I love hearing $1M systems, they are inspiring… I am not jealous altough my system costs 1/6th of that. Every step is amazing.

I agree. No need to be jealous, we should be inspired and motivated. 

I'd suggest the jealously factor depends on one's focus. If one is, above all, interested in having the latest, greatest new flavor or the most boutique gear or the most advanced topology or the most elegantly sculpted casework, etc., I'd submit one will be far more vulnerable to jealously, as all of the above tend to require, by definition, very deep pockets. Furthermore, the "latest and greatest" is constantly changing-- it's a moving target. 

If, on the other hand, one is most concerned with enhancing one's engagement with and enjoyment of, music and makes wise choices within one's budget, there is much less opportunity for jealously to intrude. 

Neither example provided in the article are correct in the context of marginal returns.. 

The first because the improvement is as a result of getting a dysfunctional system functional.  "unlocks the previously unrealized potential of your other components" 

Like replacing an incorrect rectifier tube or other similar build feature with the correct one.  Fixing a flat tyre on a car.  Everything will work better and as it was designed to.  This is shifting the returns curve upwards, not a movement on it.

The second is changing the technology which adds a characteristic that wasn't there previously.  Comparing two exact same cars but for the fact that one has a manual transmission and the other automatic.

Anyway, this is actually conceded - "Far from offering only incremental improvement"- but marginal analysis is only about increments.  So, does not apply by the author's own admission..

I think its probably not a good idea to use the marginal return concept to audio equipment.  It has a very narrow meaning, one that is exceptionally useful and informative in the correct context.

I didn't read it all, they lost me early. I think system synergy is and has always been the key. High dollar systems can sound amazing or they can sound like crap. Money has little to do with it other than the cost of top shelf loudspeakers requires a minimum buy in.