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Ellig Wiseman Wine Isnie Presentation 2006
1. The Economics of Interstate Direct Wine Sipping Jerry Ellig Mercatus Center, George Mason University Alan Wiseman Department of Political Science, Ohio State University
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4. Virginia and Direct Shipment Timeline April 2003 :VA Gov. signs bill to legalize direct shipment. May 2005: Supreme Court rules that discriminatory shipment bans are unconstitutional July 1, 2003 : Direct Shipment to VA is legal. July 2002 : Price and variety data collected from online and bricks and mortar stores in Northern VA March 29, 2002 : Federal Judge finds VA direct shipment law unconstitutional April 1, 2002: Federal Judge puts hold on ruling, pending appeal July-August 2004 : Price and variety data collected from online and bricks and mortar stores in Northern VA
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13. Mean Cost Savings (or Extra Expenses) per Bottle When Shopping Online for wines ≥$20/bottle 0.698 2.786** 4.482** 0.034 2.372* 4.403** -5.909** -1.481 2.251 5.884** 2004 N=27 3.654 Online Savings per Bottle (UPS 2 nd Day Air—12 Bottles) 5.005** Online Savings per Bottle (UPS 3 rd Day Air—12 Bottles) 7.194** Online Savings per Bottle (UPS Ground Service—12 Bottles) 2.912 Online Savings per Bottle (UPS 2 nd Day Air—6 Bottles) 4.396* Online Savings per Bottle (UPS 3 rd Day Air—6 Bottles) 7.027** Online Savings per Bottle (UPS Ground Service—6 Bottles) -3.693 Online Savings (UPS 2 nd Day Air—1 Bottle) 1.526 Online Savings (UPS 3 rd Day Air—1 Bottle) 5.512** Online Savings (UPS Ground Service-Buying 1 Bottle) 9.435** Online Savings (No Transportation Costs) 2002 N=36 Category
14. Mean Cost Savings (or Extra Expenses) per Bottle When Shopping Online for wines <$20/bottle -4.32** -2.299** -0.56 -5.12** -2.83** -0.76*** -12.35** -7.94** -4.23** 0.921** 2004 N=27 -4.22** Online Savings per Bottle (UPS 2 nd Day Air—12 Bottles) -2.89** Online Savings per Bottle (UPS 3 rd Day Air—12 Bottles) -0.697 Online Savings per Bottle (UPS Ground Service—12 Bottles) -5.04** Online Savings per Bottle (UPS 2 nd Day Air—6 Bottles) -3.58** Online Savings per Bottle (UPS 3 rd Day Air—6 Bottles) -0.93** Online Savings per Bottle (UPS Ground Service—6 Bottles) -11.4** Online Savings (UPS 2 nd Day Air—1 Bottle) -7.05** Online Savings (UPS 3 rd Day Air—1 Bottle) -3.14** Online Savings (UPS Ground Service-Buying 1 Bottle) 1.661* Online Savings (No Transportation Costs) 2002 N=36 Category