You haven't seen any studies saying one is better than the other because it's just a fact that FLAC is MP3 is a lossy format and FLAC is lossless. Even if you can't hear the difference yourself, a track in FLAC does sound better than one in even a 320kbps MP3 file.
Even with some shitty Sennheiser HD 201s and a Galaxy S my Tron Legacy soundtrack sounds better in FLAC than the 320kbps MP3 version. It's hard to describe what it is but the FLAC version sounds like it has more depth, and it's not as tinny in some tracks like "The Son of Flynn".
It's not taking into the account of the limits in human hearing. MP3 coding is supposed to cut sounds off at 18khz-16khz depending on the bit-rate. Engineers did this because those are the limits of human hearing.
Humans
An audiogram showing typical slight hearing variation.
In a human, sound waves funnel into the ear via the external ear canal and hit the eardrum (tympanic membrane). Consequently the compression and rarefaction of the wave set this thin membrane in motion, causing the middle ear bones (the ossicles; malleus, incus and stapes) to move. The number of sound pressure level vibrations (sonic waves) per second denotes the frequency. Infrasonic (below hearing), sonic (aural), and ultrasonic (above hearing) frequencies are measured in Hertz (Hz); one Hertz is one cycle wave (or singular pressure wave in audionics) per second. Specifically, humans have a maximum aural range that begins as low as 12 Hz under ideal laboratory conditions,[3] to 20,000 Hz in most children and some adults, but the range shrinks during life, usually beginning at around the age of 8 with the higher frequencies fading. Inaudible sound waves can be detected (felt) by humans through physical body vibration in the range of 4 to 16 Hz. There is a difference in sensitivity of hearing between the sexes, with women typically having a higher sensitivity to higher frequencies than men.[4] The vibrations of the ossicular chain displace the basilar fluid in the cochlea, causing the hairs within it, called Stereocilia, to vibrate. Hairs line the cochlea from base to apex, and the part stimulated and the intensity of stimulation gives an indication of the nature of the sound. Information gathered from the hair cells is sent via the auditory nerve for processing in the brain.
[edit]Effects of high frequency limit
So-called "Nelson" dog whistles exploit this phenomenon by producing sounds at frequencies higher than those audible to humans but well within the range of a dog's hearing.
When compressing a digital signal, an acoustic engineer can safely assume that any frequency beyond approximately 20 kHz will not have any effect on the perceived sound of the finished product, and thus use a low pass filter to cut everything outside this range. The sound can then be sampled at the standard CD sample rate of 44.1 kHz (or 48 kHz in DAT), set somewhat higher than the calculated Nyquist-Shannon rate of 40 kHz to allow for the cut-off slope of a reasonable low pass filter.
When additional compression of sound is required, higher frequencies are usually cut off first, because regular adults' hearing in those areas is often even less than 20 kHz. This is due to loss of hearing in the high-frequency range, due to either hearing damage (e.g. from listening to loud music) or aging. For instance, the commonly used MP3 coding often cuts sounds above 18 kHz, or when compressing as high as 128 kbit/s, at 16 kHz.[5]
http://en.wikipedia.org/wiki/Hearing_range#Humans
Why not do a blind A/B test with foobar and see for yourself?