Abstract

This paper considers critical rationalism under an institutional perspective. It argues that a methodology must be incentive compatible in order to prevail in scientific competition. As shown by a formal game-theoretic model of scientific competition, incentive compatibility requires quality standards that are hereditary: using high-quality research as an input must increase a researcher’s chances to produce high-quality output. Critical rationalism is incentive compatible because of the way it deals with the Duhem-Quine problem. An example from experimental economics illustrates the relevance of the arguments.