Stata and the One-Armed Bandit
AbstractI research the market efficiency of the German 6/49 parimutuel lottery game using Stata. To this end, I investigate the existence of profit opportunities for particularly unpopular combinations of numbers (Papachristou and Karamanis (1998)), employing the covariates proposed by Henze and Riedwyl (1998). Furthermore, I examine the time series behavior of stakes bet in relation to the size of the jackpot in the respective draw. In particular, I attempt to verify the conjecture that the skewness of the payoff distribution drives bettors' appetite for participation (Golec and Tamarkin (1998)). Along the way, I show how one can set up Stata to retrieve data from the internet, unpack them automatically and shape them for the analysis. I also show how one can schedule tasks to automate the process further.
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Bibliographic InfoPaper provided by Stata Users Group in its series Fall North American Stata Users' Group Meetings 2008 with number 6.
Date of creation: 16 Nov 2008
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
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