About a week ago the New York Times ran an article about cognitive dissonance describing how the first evidence of rationalizing irrational behavior has been found in monkeys. Turns out that simians are able to convince themselves they have made the right choice, much like the collectors and dealers who showed up at Christie's on November 13 and spent a collective $325 million--the second highest auction total in the field--in under two hours.

The crowds were out in full force for the occasion and successfully shook off any doubt about the health of the art market after last week's tumultuous results. Sarah Jessica Parker teetered around in a strapless black dress. Marc Jacobs, his shorn hair dyed a cobalt blue and purple, took in the performance with an arched eyebrow from start to finish. By lot 12, eight artist's records had been broken, sparking repeated bouts of applause from the audience. Fifty-one of the 67 lots on offer sold for more than $1 million, prompting one dealer to offer the Times an exuberant soundbite: One million dollars is the new $10 grand.

Despite the celebratory mood and standout prices for Lucian Freud, Richard Prince, Ed Ruscha, and Mark Rothko (a red, blue, and orange canvas from 1955 fetched an above-estimate $34.2 million), there were several indicators that the market is not quite as ebullient as it appeared a few months ago. Several top-end works failed to meet their estimates but broke records regardless. Jeff Koons's Diamond (Blue), with an unpublished estimate of $20 million, was saved from near-failure by a sole bidder--dealer Larry Gagosian, who has been funding and selling the artist's Celebration series, including the giant blue bauble. Gagosian paid an artist's record $11.8 million to reclaim it. Gerhard Richter's 1963 Dusenjager likewise attracted limp bidding, selling for an artist's record $11.2 million against a $10/15 million estimate.

Freud's Ib and her husband, 1992

Warhol's Liz, 1963

de Kooning's Untitled XXIII, 1977

At the beginning of the sale, auctioneer Christopher Burge disclosed that interested parties might be bidding on six lots in the sale, including Freud's 1992 Ib and Her Husband, which sold for a record $19.3 million (unpublished estimate: $15 million-plus); Warhol's 1963 Liz, consigned by Hugh Grant who paid $3.5 million for it six years ago, which sold for $23.5 million (estimate: $25/35 million); and Willem de Kooning's 1977 Untitled XXIII, which fetched $19.9 million (estimate: $16/19 million). In other words, the works involved third-party guarantors, meaning the firm effectively pre-sold the work to an outside party who provided a guarantee to the seller in return for a portion of the winnings if the selling price exceeded the guaranteed sum. Third-party guarantees are controversial because the guarantor, whose identity is not disclosed, is permitted to bid on the work during the auction. If a third-party guarantor ends up winning the property for a price that exceeds the minimum guarantee, their share in the upside amounts to a decrease in the buyer's premium.

Cognitive dissonance indeed.

--Kelly Devine Thomas