Mulder, Your statement is exactly what a street hooker explained to me about how the price is set. She used different words but explained the same thing. It is amazing how some people just "get it" through experience. Good post!This is a bit of topic, but It may be worth pointing out that what we are talking about here is a form of manipulation of the customers/buyers. In that respect - as you point out - there is nothing new or special about the HiFi industry in particular. The perfect market is defined as: a market that is structured to have no anomalies that would otherwise interfere with the best prices being obtained. Perfect information is usually included as one of the conditions for a perfect market. BUT: It is generally not a good idea to be a seller in a perfect market, because prices are driven down so low that it is quite difficult to generate a reasonable profit. Consequently, many sellers seek out less perfect markets, where they can realize higher profit levels.