Thesis for Adam Smith Essay

America's current market economy promotes self-interest, not greed and selfishness.

Reaction to Wine Prices

While reading "Wine Study Shows Price Influences Perception," I learned several new theories in the elements of economics. Thanks to the article, I learned that by increasing the price of an item, can improve its likelihood for success. In the study conducted within the article, several wine bottles were consumed by 20 subjects who were then asked to rate the pleasure they received from their respective beverages. The prices of the bottles ranged from 15 to 90 dollars. However, what the subjects did not know was that some of the alcohols were the same. For example, the least and most expensive bottles were made up of the same liquid. Yet, the subjects chose the 90 dollar bottle out right over all the others, simply based on the price value. The science behind the experiment showed higher activity in the pleasure sensors of the brain when the subjects drank the most expensive wine. However, the same wine, at a lower cost, showed less pleasure and was reported to be not as enjoyable. This shocking find offered a direct insight into the relationship between economics and the inner workings of the human brain.
I can relate this article to my life by utilizing the same principals discussed, and applying them to the drum market. In the music production industry, many different companies make the same products. Most if not all companies make drum sets, cymbals, and various pieces of percussion. Even though the current drum market is declining, due to the fact that owning drum equipment is a luxury in this economy, new items and  sounds are always being created. In the wine experiment, the consumer valued the wine mainly on the price, as apposed to the quality. Similar scams occur in the drummer's economy. A certain cymbal made by a reputable company can go for as much as 800 dollars. However, the quality does not always match the price. Elements such as the value of the metal, the tone of the cymbal, and its versatility all go into the equation when purchasing a cymbal. Yet, like the wine example, the choice must come down to personal preference. In the wine test, after the subjects were not informed on the price, they ended up selecting the cheapest wine as the most pleasurable. Essentially, by eliminating the obstacle of price, they made their decision more easily. When considering to buy a cymbal, I always refer to my preference. If I want a small quiet cymbal, I do not go out and buy a big loud one if it is more expensive. I buy what I need, and then I take the price into account. To me, quality is more important than face value. And face value is simply an opinion.