Audiophiles vs DIY-o-philes

hi dgarretson:

i have stated a principle of economics, namely that a consumer will pay a price equal to the value he/she places on an item, or what he/she believes it is worth.

the transaction has nothing to do with the market price.
it is based upon subjective value.

for example, if a used cd player is selling for $1500 and i think it is only worth $1000, i won't buy it. the fact that someone else will buy it is irrelevant. it is possible that someone may value the cd player at or above $1500, in which case, a sale is made.

by the way, audiophile amd diy-o-phile have different connotations. such terms may imply a desire to achieve a certain level of sound quality. however, some people are more confident. less lazy and more motivated to build something, than others. some people would prefer to let someone else do the work.

the DIY crowd is a different hobby than high end, just as collecting music is. one thing that's facinating is how audiophiles would love to believe that their equipment exhibits 'emotion'...most likely lodged in our heads from seeing 'the love bug' or '2001'as kids.

Mrtennis,

Expressed in terms of economic principles, the problem is that rapid price inflation at the high end has transformed audio into just another luxury goods market. A luxury goods market (e.g. yachts, exotic cars, art, and high-end real estate in NYC) is typically price inelastic. The higher the price the more sells. Valuation is set by intangible factors such as prestige associated with membership in an exclusive community. Luxury goods manufacturers maximize their profit margin at low volumes of production. So the more money chasing high end audio, the more the market fragments into niche suppliers. Currently it's starting to look like a mere reflection of the gilded age.

It's comforting to believe that valuation is a deeply personal matter, but the subjectivist notion of valuation carries the audio hobby further away from its moorings in performance and musical enjoyment as selection criteria. DIY helps to refocus the hobby on its original value proposition.

i would conjecture that many hands-on hobbyists prefer that route because they believe they can achieve "better" sound by selecting the parts themselves, rather than relying upon the designer's choices. i don't think it's purely an effort to save money.

the subjectivist notion applies also to other collectibles.

there are fads in all hobbys and although most audio components are depreciating assets, in contrast to paintings, and sculpture, for example, some components actually increase in value.

you are accurate in your analysis that most expensive audio components are price inelastic.

where the elasticity increases may be in the lower priced items, say in the $2000 to $5000 range, where the overall demand may be higher. it is in perhaps this range, or some other range where sales of products may be more price sensitive, than products say, in the range $10000 and up.

you are also accurate in your assessment that "expensive" audio gear is just another collectible for many who can afford it.

note, it is possible to design and build your own amplifier and spend thousands of dollars aon parts and labor, which could exceed the cost of another amplifier which may be suitable for one's needs.

the point is do it yourself may be motivated by quality of sound rather than economics, and that the diy hobbyist may be no different than the non diy audiophile.

Components in the "bread basket" of the marketplace(say up to $10K) are good for modifiers, insofar as they can be well engineered while compromised in the parts bin. Sometimes fairly simple parts upgrades can take them to a much higher level.

This is not to say that components above $10K are not compromised. It's just that in the view of most owners, modifying them is tanamount to drawing a moustache on the Mona Lisa.