Galilean Reflections on Milton Friedman’s "Methodology of Positive Economics", with Thoughts on Vernon Smith’s "Economics in the Laboratory"

Abstract

The article examines in detail the argument of M. Friedman as expressed in his famous article "Methodology of Positive Economics". In considering the problem of interconnection of theoretical hypotheses with experimental evidence the author illustrates his thesis using the history of the Galilean law of free fall and its role in the development of theoretical physics. He also draws upon methodological ideas of the founder of experimental economics and Nobel prize winner V. Smith.