Editing Endowment effect (section)

===Loss aversion===
The leading explanation for the aforementioned WTP-WTA gap is that of loss aversion. It was first linked by Kahneman and his colleagues that selling an endowment means the loss of the object, and as humans are aligned to be more [[Loss aversion|loss-averse]], less utility is obtained from acquirement of the same endowment.<ref name="KahnemanKnetschThaler" /> They go on to suggest that the endowment effect, when considered as a facet of loss-aversion, would thus violate the [[Coase theorem]], and was described as inconsistent with standard [[economic]] theory which asserts that a person's [[willingness to pay]] (WTP) for a good should be equal to their [[willingness to accept]] (WTA) compensation to be deprived of the good, a hypothesis which underlies [[consumer theory]] and [[indifference curves]]. Another aspect of loss aversion exhibited within the endowment effect is that opportunity costs are often undervalued. The overcharging of the selling item stems from the fixation of losing the item rather than the unattained gain if the sale falls through.<ref>{{Cite journal |last=Thaler |first=Richard |date=1980-03-01 |title=Toward a positive theory of consumer choice |url=https://dx.doi.org/10.1016/0167-2681%2880%2990051-7 |journal=Journal of Economic Behavior & Organization |language=en |volume=1 |issue=1 |pages=39–60 |doi=10.1016/0167-2681(80)90051-7 |s2cid=39532776 |issn=0167-2681|url-access=subscription }}</ref>

The correlation between the two theories is so high that the endowment effect is often seen as the presentation of loss aversion in a riskless setting. However, these claims have been disputed and other researchers claim that [[psychological inertia]],<ref>{{Cite journal |last1=Gal |first1=David |last2=Rucker |first2=Derek D. |date=2018 |title=The Loss of Loss Aversion: Will It Loom Larger Than Its Gain?|journal=Journal of Consumer Psychology |language=en |volume=28 |issue=3 |pages=497–516 |doi=10.1002/jcpy.1047 |s2cid=148956334 |issn=1532-7663|doi-access=free }}</ref> differences in reference prices relied on by buyers and sellers,<ref name=":1"/> and ownership (attribution of the item to self) and not loss aversion are the key to this phenomenon.<ref name="Morewedge2009"/>