This paper shows that the possibility of formally incorporating reference-dependence into the theory of consumer behavior was explored well before Kahneman and Tversky (1991); specifically, in separate papers by Alt, Samuelson or Bernardelli in late 1930s. These papers emerged within a debate on...

This paper refutes Rothbard’s claim that the law of diminishing marginal utility implies a non-increasing demand curve. It is argued that the law under Rothbard’s interpretation is, in fact, irrelevant for demand theory. An example of increasing demand is provided