Olszewski, Wojciech; Sandroni, Alvaro - In: American Economic Review 101 (2011) 2, pp. 788-818
We examine Popper's falsifiability within an economic model in which a tester hires a potential expert to produce a theory. Payments are contingent on the performance of the theory vis-a-vis data. We show that if experts are strategic, falsifiability has no power to distinguish scientific...