In two previous papers (Parker & Schneider, 1980; Schneider & Parker, 1987), we developed a model, based on Fechner's assumption, which successfully predicted the relationship between loudness and intensity discrimination for tones presented in quiet and in notched noise. In the present paper, pure-tone intensity-increment thresholds and loudness matches were determined for several levels of a standard tone in the presence of a broadband masker whose spectrum level was set to 35 dB below that of the standard tone. The model was unable to relate loudness to intensity discrimination under these conditions. Thus, the spectral composition of the masker affects the relationship between loudness and intensity discrimination in ways that cannot be accounted for by the model.