http://www.observer.com/2010/culture/why-art-market-rising
Three favorite passages, on the eve of the Haslinger auction:
The acquisitive nature of the art collector is something that simple economic analysis can't account for. Sometimes two people fall in love with one work, bidding it to the moon. Some artworks soar above the estimates because they were mispriced. Sometimes dealers and speculators help a work achieve a high price because it serves their vested interests, just as in any other business. Some works have been impossible to get for years, and hit pent-up demand from collectors who've been waiting eagerly for a shot . . .
AUCTION SALES ARE always a bit of a crapshoot. It's one night, one lot, one moment in time; if two willing bidders don't show up, the painting can simply sell for the bid in the book, or not sell at all. On the other hand if two people are in the mood to duel, what's the harm in a little potlatch? (an Indian ceremony where property is destroyed by its owner in a show of wealth that other guests later attempt to surpass). It won't be the first time people are willing to overpay for what they want, and why should we presume that every collector needs to be totally rational, anyway? . . .
If we all believe it's true, then it is, and if we all believe that pigs fly, then they do.
