In the US we are only are bound by US law (which would include treaties etc).
While Sotheby's may be covered by NY law (I assume it is in NYC), in Illinois there is no prohibition against a bidder bidding up an item (even there own item) and I am sad to say it is common.
Once you cut off the head, the chicken dies. What more do you need than castration (death would only put an end to his misery).
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