Assume that in Never-Ever land two paintings by famous artist with identical characteristics were put up for sale. However, one of the paintings had previously been sold in a “hot” market for a high price and the other had been sold in a “cold” market for a low price. If the market is rational, would the painting that previously sold in the “hot” market necessarily fetch a higher price at the auction? What biases that were discussed in class may cause the painting that previously sold in the “hot” market indeed to be sold at a higher price at the auction?