We have previously wrote about the elementary kinetic models. Now we would like to put them to a certain use - namely we would like to model wealth distributions. The problem is that the stationary distribution of the elementary kinetic models, as we have shown before, is Boltzmann-Gibbs distribution, while the empirical distribution of wealth has a power law tail (see Fig. 1). Therefore we will need some essential modifications to replicate the empirical distribution.

Recently while zapping over TV channels one program on the Discovery Science channel caught my attention. So have started watching "Weird connections" episode "Law of the Urinal" out of pure general interest. Yet after finishing watching it I thought that it should prove to be very interesting in a context of Physics of Risk. Thus I would like to encourage you to watch it on the Discovery Science channel (as far as I know it is being shown again from time to time) or on the vimeo.com website.

The book by George A. Akerlof and Robert J. Shiller "Animal Spirits, How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism" [1] has inspired me to share with you these thoughts. John Maynard Keynes introduced the term "Animal spirits" in 1936 to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior in business and so impact the economic outcome and development. G. A. Akerlof and R. J. Shiller provide in this book evidence that contemporary theory of economics based on the hypotheses of efficient market and rational expectation fails to explain economic processes in the periods of global crises. They further develop the term of Animal Spirits seeking to explain the evolution of global economy in the periods of crises and depression and looking for the appropriate measures how to overcome the economic slump.

In the second half of the XIXth century physicists, of whom probably the most well known are Maxwell and Boltzman, worked on the explanation of empirically discovered laws of thermodynamics. While working on this problem they developed a simple model to reproduce the collisions of particles in the ideal gasses. This simple model allowed to analytically derive the distribution of energy and velocities in gasses and to lay foundations for the statistical physics. In the context of Physics of Risk it is worthwhile to mention that Maxwell and Boltzman relied not only on the empirical works by other physicists, but also on the demographic data! Boltzmann even wrote that "molecules are like so many individuals, having the most various states of motion" [1, 2]. Inspired by this quote we will briefly review, while relying on [2], some of the simplest kinetic models and their applications to modeling of socio-economic systems.

Previously we wrote about the "illogical" world, which is full of paradoxes and nontransitivity. This time we discuss an elementary dice game, which is also nontransitive and thus appears to be unnatural, "cheated" and etc. Yet the example is completely natural and easily understandable, it can be also tested empirically (and not only theoretically as the previous example) - it can be played at home! All of the relevant information you'll hear in the youtube video (see below).

We also provide a more simple take on the same topic below.