In the research done by Kahneman, Knetsch and Thaler $(1990)$; they found that: $*$ Randomly assigned

owners of a mug required around $$7($significantly more money$)$ to part with their possession, while $*$

Randomly assigned buyers were willing to pay only around $$3$ to acquire it$.$

REQUIRED: Explain the psychological bias exhibited by the subjects in the experiment and the expected

behaviors of investors affected by such bias that can cause investment mistakes.