This post originally started as a question about DACs but I thought it would be better to explain my current understanding first (question is at the end).
As an economist, I see four problems in the audiophile market which act against a potential buyer getting reliable information and value for money:
Informational Asymmetry
The average buyer has listened to a limited number of DACs and audio equipment, often relying on specifications and reviews rather than extensive firsthand experience. Meanwhile, dealers and salespeople have access to a broader range of products and more in-depth knowledge. This creates a significant informational gap where sellers possess more information about the true performance and subtle differences between equipment than buyers do.
Principal-Agent Problem
Salespeople, reviewers, and influencers (the agents) have incentives that do not align with the principals (consumers). For example, salespeople receive more money for selling higher-priced equipment, regardless of whether these models offer audible improvements. Similarly, reviewers may be incentivised through sponsorships or advertising revenue to favour certain brands or products, potentially compromising their objectivity.
Misaligned Incentives
Many reviewers rely on partnerships with manufacturers for their income. This financial dependency can lead to biased reviews that emphasise perceived differences between DACs/equipment, even when objective measurements suggest minimal or no audible distinctions. Additionally, content creators may prioritise sensational claims to attract more viewers or subscribers, further distorting the perceived value and performance of various DACs.
Separately, reviewers and influencers make money from new content and are therefore incentivised to keep reviewing new gear, even if what's currently available is so good any further improvements would be inaudible to a human.
Placebo Effect & Status
Some people may think they hear differences due to the placebo effect. They feel better with more expensive gear but it isn't an objective difference somebody else could hear. I've had multiple salespeople tell me 'high end' audio is about feeling. In addition, some people prefer more expensive gear for the status they think it gives them. Neither of these are things that I care about.
My question
Is there any truth to well-engineered DACs sounding different from each other?
Specifically, in a well-treated room with optimal speaker and listener placement, is there any REAL difference in what you would hear between any of the high-scoring DACs Amir has tested?
From what I understand, once the SINAD is good enough the human ear wouldn't be able to tell any difference. Yet there are countless reviewers, salespeople, YouTubers, etc., who claim that (well-built) DACs do sound different.
Is this just a combination of outright lies, delusion and the problems stated above, or is there some truth to it? Could it be that a linear power supply, higher resolution internal clocks, or passive analog volume control (vs digital) make a difference but the measurements required to test the effect are omitted from the tests Amir does? Or could it be that some DAC manufacturers add their own 'colour' (or EQ) to the output that is discernible by the human ear but still allows it to perform well on a SINAD measurement?
TLDR: is all of what reviewers/salespeople say complete BS or can two DACs that both measure well have one that sounds better than the other?
