From old issues to new directions in experimental psychology and economics
Vernon L. Smith a1 a1 Economic Science Laboratory, University of Arizona, Tucson, AZ 85721
smith@econlab.arizona.edu
Abstract
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).
