Econophysics is a new and exciting cross-disciplinary research field that applies models and modelling techniques from statistical physics to economic systems. It is not, however, without its critics: prominent figures in more mainstream economic theory have criticized some elements of the methodology of econophysics. One of the main lines of criticism concerns the nature of the modelling assumptions and idealizations involved, and a particular target are ‘kinetic exchange’ approaches used to model the emergence of inequality within the distribution of individual (...) monetary income. This article will consider such models in detail, and assess the warrant of the criticisms drawing upon the philosophical literature on modelling and idealization. Our aim is to provide the first steps towards informed mediation of this important and interesting interdisciplinary debate, and our hope is to offer guidance with regard to both the practice of modelling inequality, and the inequality of modelling practice. _1_ Introduction _1.1_ Econophysics and its discontents _1.2_ Against burglar economics _2_ Modelling Inequality _2.1_ Mainstream economic models for income distribution _2.2_ Econophysics models for income distribution _3_ Idealizations in Kinetic Exchange Models _3.1_ Binary interactions _3.2_ Conservation principles _3.3_ Exchange dynamics _ 4 _ Fat Tails and Savings _ 5 _ Evaluation. (shrink)

This paper contributes to the clarification of the concept of “typicality” discussed in contemporary philosophy of physics by conceiving the nomological status of a typical behaviour such as that expressed in the Second Law of Thermodynamics as a “minutis rectis law”. A brief sketch of the discovery of “typicality” shows that there were ideas of typical behaviour not only in physics but also in sociology. On this basis and in analogy to the Second Law of Thermodynamics, it is shown that (...) the nomological status of sociological laws such as Gresham’s Law can also be conceived as “minutis rectis laws”. (shrink)