A Microsoft Excel Version of Parrondo’s Paradox
18 Pages Posted: 11 Jul 2009 Last revised: 26 Jul 2009
Date Written: July 24, 2009
Parrondo’s paradox is analyzed via Monte Carlo simulation and Markov chains within Microsoft Excel. The properties of individual and mixed games are clearly demonstrated. The accompanying Excel workbook, Parrondo.xls, enables the reader to replicate results, verify claims, and extend the analysis in unforeseen ways.
Keywords: Monte Carlo simulation, Markov chain, games
JEL Classification: C15, C73, C88
Suggested Citation: Suggested Citation