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The Costs of Research

Nicholas Rescher

• University of Pittsburgh

“Peirce and the Economy of Research.” Philosophy of Science 43 (1977): 71–98.

Economic “costs” of research are important considerations in estimating the value of potential research.

It is worthwhile to resurrect the neglected idea of Charles S. Peirce that the economics of research plays a crucial role in the methodology of science. Peirce observed that perhaps an infinite number of alternative hypotheses or theories might account for a given set of data. He therefore proposed the following economics of research. In deciding among rival hypotheses during the inductive process of hypothesis testing, we should weigh cost considerations (time, effort, energy, and money) along with the traditionally valued scientific approach of benefit considerations (closeness of data fit, explanatory scope, and simplicity).

In the light of the economics of research, we can detect a shortcoming in the decision theory approach. Although the decision theory focuses on the expected cognitive value of the results of scientific inquiry and research, it fails to consider the practical and important factor of the cost of the inquiry.

Peirce's economics of research is relevant so long as science policy and research depends on political determination and largesse rather than on free market signals in allocating limited research funds.