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.