Behavioral and Brain Sciences

Short Communication

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


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).