Worth More than Diamonds

The Friday File: Psychology moves markets yet economists and others don’t appreciate it. Last month Liz Taylor’s spectacular jewelry collection went to auction and took in $116 million, five times pre-auction estimates. The auction more than doubled the record for a single-owner collection set when Lady Diana’s jewels sold for $50 million. A gown she wore, expected to bring in $5K went for $362,500 and the famed 50-carat La Peregrina pearl went for $10.5 million. Why? They were worn by Taylor.