20 Bundling Bundling is most effective when demands of two consumers are highly negatively correlated See Table 13.3 Local governments have recently adopted bundling in an effort to entice voters to pass local-option tax measures Targeting tax revenue to a bundle of specific projects Such as school improvements, a retirement center, a sports complex, and a transit facility improves likelihood of tax passing Negative correlation of these projects makes bundling a very attractive method for funding If voters had to consider each project separately, probability of all projects receiving majority support would decrease
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