1. The value function is convex to the x axis explain what feature of the value function does this shape reflect

2. The value function is steeper in the loss domain than in the gains domain what aspect of behavior does this reflect.

3. (a) Explain why product bundling leads to lower prices according to prospect theory. (b ) Give an example for (a). (c ) Give an example that is an exception to (a), that is where the opposite is true, and the bundled product has a higher price than the summative price of its individual components.