Editing Endowment effect (section)

=== Individual ===
[[Herbert Hovenkamp]] (1991)<ref name="Hovenkamp" /> has argued that the presence of an endowment effect has significant implications for [[law]] and [[economics]], particularly in regard to [[welfare economics]]. He argues that the presence of an endowment effect indicates that a person has no [[indifference curve]] (see however Hanemann, 1991<ref name="Hanemann" />) rendering the neoclassical tools of welfare analysis useless, concluding that courts should instead use WTA as a measure of value. Fischel (1995)<ref name="Fischel" /> however, raises the counterpoint that using WTA as a measure of value would deter the development of a nation's infrastructure and [[economic growth]]. The endowment effect changes the shape of the indifference curves substantially<ref>{{Citation|url=http://docplayer.net/46319513-Behavioural-indifference-curves.html |title="Behavioral Indifference Curves," Australasian Journal of Economics Education. 2015, 2: 1–11}}</ref> Similarly, another study that is focused on the Strategic Reallocations for Endowment analyses how it is the case that economics's agents welfare could potentially increase if they change their endowment holding.

Further to this, the endowment effect has been linked to both economic and psychological impacts of various scale. For example, often individuals refuse the sale of their house or upscale their expected value simply due to their emotional attachment and effort poured into it. This means they might either stick with a property which causes greater inconvenience to alternatives or have an increased level of difficulties associated with its sale.<ref name="Huck" /> Either of these scenarios both negatively impact the relevant economy and the individual's mental welfare. Alternatively, if a buyer is subject to purchasing the item at the WTA level when it is set above market price, they are subject to overspending which positively impacts the economy whilst potentially reducing individual welfare yet again.