Explain the following phenomena using properties of Kahneman and Tversky's prospect theory as we've discussed it in class. Carefully state what is being evaluated, what is the reference point, what property of prospect theory explains the phenomenon, and how that property explains it. Please still be concise.

(a) The difference in return between stocks and bonds is much greater than would be expected from expected-utility theory.

(b) In many contracts for services (such as cell-phone contracts), different features of the service are separated out in great detail, yet the price of the service is subsumed in a single relatively large payment.