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Abstract

We consider the performance of distance-metrics method applied in demand estimation of carbonated soft drink products. Based on preliminary OLS outcome, the estimated coefficients are satisfied our prior expectations and results are consistent with previous research. Brand loyalty and strong substitution between products of the same group is found in our study, as also found in Rojas and others. Our tentative conclusion is that distance metrics method is worthy of further consideration in demand estimation and offers the potential for study of merger simulations.

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