Einav et al XXXXXXXXXXfound that people who live in high sales tax locations are much more likely than other consumers to purchase goods over the Internet because Internet purchases are generally...

Einav et al. (2012) found that people who live in high sales tax locations are much more likely than other consumers to purchase goods over the Internet because Internet purchases are generally exempt from the sales tax if the firm is located in another state. They found that a 1% increase in a state’s sales tax increases online purchases by that state’s residents by just under 2%. Is the explanation for this result similar to that in the Challenge Solution? Why or Why not?