Elementary kinetic exchange models
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.