Fontini F. (2009).

Probability And Uncertainty: The Legacy Of Georgescu‐Roegen. Metroeconomica, Volume 60, Issue 2, pp. 324-342.

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’s lesson a lexicographical utility function is proposed and analysed in the mark of his own peculiar scientific methodology. It is demonstrated that such a formulation can be useful in solving the usual failure of the expected utility model, such as the Ellsberg paradoxes. The epistemic limits of our re‐construction are considered.