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Inverse View
It is not the case that If central generalizations like 'firms maximize profits' are insulated from empirical falsification, the theory loses explanatory and predictive authority.
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Reasons For
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Reason for
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1.
Some high-level generalizations usefully guide research even if auxiliary assumptions protect the core claim from direct test.
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2.
Falsifiability isn't binary; theories can be partially insulated yet still generate testable predictions about firm behavior.
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3.
Explanatory value derives from unifying diverse phenomena under one framework, not solely from empirical vulnerability.
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Reasons Against
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Reason against
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1.
Unfalsifiable claims cannot distinguish between accurate models and false ones, making them scientifically empty.
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2.
If profit-maximization holds regardless of observed behavior, the theory explains everything and therefore nothing specific.
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3.
Predictive authority requires the possibility of being wrong; immunity from falsification eliminates this requirement.
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