Here is the problem:
Suppose that N agents can exchange money in pairs. They are all assigned the same amount of money m0, and are then allowed to interact.
At each step, a pair of agent i and j with money mi and mj is randomly chosen and a transaction takes place.
After a random reassignment of money, we assume:
Where E is a randon number between 0 and 1.
(this reassignment ensures no debts after the transaction).
Using Matlab, simulate this model and determine the distribution of money among the agents after the system has relaxed to an equilibrium state.
If someone could help me on this, it would be grealty appreciated.