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One thing a Bay area friend of mine pointed out is that Amazon charges the same price regardless of your cost of living (modulo sales tax, in some cases). Stuff just doesn't seem as expensive making $100,000 in SF as it does making $60,000 in Ann Arbor.

House? Yes. Bar of soap at a Sacramento St. boutique? Yes. LEGOs on Amazon? Not so much.

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That's a good point, but it also depends on disposable income. If after rent (or mortgage), food and other basic necessities you have $1000 left per month then it doesn't make a difference whether you earn $100,000 in SF or $60,000 in Ann Arbor.

And then for both examples a $50 Lego toy is 5% of the monthly disposable income.

That's hardly unique to Amazon. It applies to any nationwide company, and most any nationwide product.

I assume that part was implied.

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