Probability and uncertainty: the legacy of Georgescu-Roegen
AbstractIn 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.
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Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0008.
Length: 21 pages
Date of creation: Dec 2005
Date of revision:
Other versions of this item:
- Fulvio Fontini, 2009. "Probability And Uncertainty: The Legacy Of Georgescu-Roegen," Metroeconomica, Wiley Blackwell, vol. 60(2), pages 324-342, 05.
- B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-20 (All new papers)
- NEP-HPE-2005-12-20 (History & Philosophy of Economics)
- NEP-UPT-2005-12-20 (Utility Models & Prospect Theory)
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