Abstract
Kinetic theory of dissipative particle dynamics is developed in terms of a pair collision theory. The kinetic transport coefficients are computed from explicit collision integrals and compared favourably with detailed simulations. Previous theory is found to correspond to a weak scattering limit, or Vlasov theory, and previously reported discrepancies with simulations are thereby largely resolved. In the large dissipation limit, we find that qualitatively new scaling behaviour for the transport coefficients is indicated.