Can Superstitious Beliefs Affect Market Equilibrium? Personal Beliefs and Beliefs about Others

We investigate whether superstitious beliefs held directly by only a fraction of the population affect market equilibrium. Using data from multiracial Singapore, we find that apartments whose unit numbers end with 8, an auspicious number for Chinese, are sold at 0.9% premium, whereas those that end with 4, an inauspicious number for Chinese, are sold at 1.5% discount. The discount for inauspicious number is insensitive to the immediate prospect of finding a superstitious buyer. It also applies to uncompleted units that were most likely bought for investment and subsequently sold without occupancy. This suggests that beliefs about others are important.