| Summary: | In this paper I
investigate the impact of numerological superstitions and discounts’ effect on
the buyers’ behavior in the apartment market using actual sales data. Based on
the dataset from Moscow primary real estate market, which includes 40
buildings, we test the apartments buyers’ demand on lucky 7th floor and unlucky
13th floor in comparison to neighboring floors and its response to developers’
discount policy for the apartments on the 13th floor. Results of the
random-effects model for the preference towards 7th floor show that that “good
luck” effect is present at the 90% confidence interval. Results of the
mixed-effects model for the preference towards the 13th floor’s apartments show
that in case of discount moderation, the “bad luck” effect of the 13th floor is
mitigated, while in case of “no discount” buildings we find the clear negative
effect of the 13th floor.
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