THE VALUE OF CHINESE SUPERSTITIONS IN MALAYSIA: EVIDENCE FROM CAR PLATE AUCTIONING

Abstract

The purpose of this paper is to examine Malaysian motorists’ willingness to pay for Chinese lucky plate numbers. Regression analyses reveal that the Chinese bidders are more likely to win and pay significantly more for the Chinese lucky numbers than their non-Chinese counterparts. Consistent with resale motive considerations, the non-Chinese bidders impose the same discount for unlucky numbers as their Chinese counterparts but do not pay a premium for the lucky numbers. We also document the influence of peer effects on the winning bid price. Specifically, Chinese bidders tend to pay more for the same plate numbers won by their peers in the previous auction, whereas both Chinese and non-Chinese bidders are less averse to the unlucky numbers if there are precedents of such ownership among their peers. Overall, our findings suggest that policymakers and marketers need to be sensitive to the subtle differences in the cultural cues of consumers in a multiracial society such as Malaysia.