  This article introduces the Hedonic Metric (HM) approach as an original
method to model the demand for differentiated products. Using this approach,
initially, we create an n-dimensional hedonic space based on the characteristic
information available to consumers. Next, we allocate products into this space
and estimate the elasticities using distances. Our model makes it possible to
estimate a large number of differentiated products in a single demand system.
We applied our model to estimate the retail demand for fluid milk products.
