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    Central generalizations like 'firms maximize profits' fun... — Carmelics
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    Challenges→It is a mistake to appraise theories by investigating whether their central generalizations are true or false

    Central generalizations like 'firms maximize profits' function as domain assumptions, which must be approximately true for the theory's scope to be legitimate.

    ?Rate how convincing each reason is below to see the overall strength.
    1 reason for
    1 reason against

    Reasons For

    1 perspective
    Reason for
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    • 1.Theories require background assumptions to establish scope; without them, no theory can claim applicability to any domain.
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    • 2.Profit-maximization approximately holds across competitive markets; deviations are often marginal and don't invalidate core predictions.
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    • 3.Allowing false domain assumptions would make theories unfalsifiable and scientifically illegitimate.
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    Reasons Against

    1 perspective
    Reason against
    ?
    • 1.Many successful theories use demonstrably false assumptions (spherical cows, frictionless surfaces) yet remain scientifically legitimate.
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    • 2.Firms pursue multiple goals—survival, market share, social legitimacy—making profit-maximization empirically inaccurate as a domain assumption.
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    • 3.Predictive accuracy matters more than assumption truth; a theory can work despite false foundations if outputs match reality.
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    Related

    Allowing false domain assumptions would make theories unfalsifiable and scientif...Firms pursue multiple goals—survival, market share, social legitimacy—making pro...It is a mistake to appraise theories by investigating whether their central gene...Many successful theories use demonstrably false assumptions (spherical cows, fri...
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    Predictive accuracy matters more than assumption truth; a theory can work despit...Profit-maximization approximately holds across competitive markets; deviations a...Theories require background assumptions to establish scope; without them, no the...

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    2 (1 for, 1 against)
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