When a parameter entity is referred to by name in the DTD, it is expanded into a string.
A parameter entity definition begins with the keyword . Instances of parameter entities in the DTD begin with "%", then the parameter entity name, and followed by an optional ";".
The following example defines the string that the "%sample;" entity will expand to:
| <!ENTITY % sample "var1 | var2 | var3"> |
The parameter entity expands to the string that may contain other parameter entity names. These names are expanded recursively.