Fontini F. (2005)

Probability and Uncertainty: the Legacy of Georgescu-Roegen.  “Marco Fanno” Working Paper N.8

 

Abstract:

In this paper we consider Georgescu-Roegen’s approach to uncertainty, showing that his characterization of expectations cannot be reduced to any probabilistic decision making model. Drawing upon
Georgescu-Roegen lesson a lexicographical utility function is proposed and analyzed in the mark of his own peculiar scientific methodology. It is demonstrated that such a formulation can be useful in solving usual failure of the expected utility model, such as the Ellsberg paradoxes. The epistemic limits of our re-construction are considered, too.