Thymology, Praxeology, Demand Curves, Giffen Goods and Diminishing Marginal Utility

Abstract

Austrian economists have been criticized for several logical inconsistencies. On the one hand, they support the law of downward sloping demand, but given that, the Giffen good serves as a refutation. On the other hand, the praxeological school embraces diminishing marginal utility but rejects indifference; yet, how can utility diminish (or increase or even remain constant, for that matter) as equally serviceable units are utilized? For this to happen, there must be equally serviceable units in the first place, and this constitutes nothing but indifference, rejected by Austrians.
The present paper is an attempt to shed light on these issues, and to demonstrate that there is no contradiction in, nor even intellectual discomfort for, the praxeological school of economics in any of these matters.