Kinetic Theory of Social Phenomena I

Explore the application of kinetic theory to social phenomena in this lecture from the Hausdorff Junior Trimester Program. Delve into the widespread occurrence of skewed distributions in economics and social sciences, with a focus on lognormal distributions in various contexts such as body weight, women's age at first marriage, consumption patterns, and call-center service times. Examine how classical methods of statistical mechanics and multi-agent systems can explain these distributions in human activities. Investigate the microscopic variation of hallmarks around target values, leading to linear Fokker-Planck type equations with skewed equilibrium densities. Learn about the incorporation of value functions from Kahneman and Twersky's prospect theory as a criterion for decision-making in these models.