'Ergodicity Economics' is Pseudoscience

TL;DR

This paper critiques 'ergodicity economics', arguing it is pseudoscience due to lack of falsifiable predictions and questioning its claims to improve economic theory.

Contribution

It provides a critical analysis of ergodicity economics, highlighting its failure to produce falsifiable implications and challenging its scientific validity.

Findings

'Ergodicity economics' lacks falsifiable predictions.

The approach has not demonstrated empirical success.

It should be regarded skeptically as pseudoscience.

Abstract

In a series of papers, Ole Peters and his collaborators claim that the 'conceptual basis of mainstream economic theory' is 'flawed' and that the approach they call 'ergodicity economics' gives 'reason to hope for a future economic science that is more parsimonious, conceptually clearer and less subjective' (Peters, 2019). This paper argues that 'ergodicity economics' is pseudoscience because it has not produced falsifiable implications and should be taken with skepticism.