Hi,

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:

mi'=E(mi+mj)

mj'=(1-E)(mi+mj)

Where E is a randon number between 0 and 1.

(this reassignment ensures no debts after the transaction).

QUESTION:

Using Matlab, simulate this model and determine the distribution of money among the agents after the system has relaxed to an equilibrium state.

Chose: N=100

m0=1000

If someone could help me on this, it would be grealty appreciated.