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From old issues to new directions in experimental psychology and economics

Published online by Cambridge University Press:  06 November 2001

Vernon L. Smith
Affiliation:
Economic Science Laboratory, University of Arizona, Tucson, AZ 85721 smith@econlab.arizona.edu
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Abstract

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The rhetoric of hypothesis testing implies that game theory is not testable if a negative result is blamed on any auxiliary hypothesis such as “rewards are inadequate.” This is because either the theory is not falsifiable (since a larger payoff can be imagined, one can always conclude that payoffs were inadequate) or it has no predictive content (the appropriate payoff cannot be prespecified).

Type
Brief Report
Copyright
© 2001 Cambridge University Press