The fair-minded individual  

Will Baude thinks endowment effects should really be called transaction aversion, because people tend to be more risk averse with bigger transactions and take cues about prices from those around them, rather than their own rational preferences. These explanations are reasonable enough, but one thing that might be missing is an input for fairness/equity, which seems pretty important to Americans. There's plenty of evidence, for example, that the average American would rather be the richest in a world of poor people than the poorest in a world of rich people. So inequalities - of precisely the type that are in play when one person is buying another's place in line - might affect an individual's preferences. Note that this is quite different from reconsidering the value of a good in light of knowledge of how others value it; it speaks instead to the questions of how deserving people are and how property should be apportioned.