Framework for simulating consumer behavior incorporating distinct product relations

The project aims to develop a framework for simulating complex consumer behavior, where complexity arises from allowing distinct relations between different product pairs. The framework models consumer behavior by capturing nuanced perceptions of product pairs, enabling some to be treated as substitutes and others as complements, with the degree of substitutability and complementarity varying across pairs, to reflect the diversity of real-world preferences. The project's contribution is both theoretical and empirical, seeking to bridge theoretical and empirical gaps by providing tools to study the behavior of measures of product relatedness, such as elasticity of substitution and cross-price elasticity of demand, in a controlled environment through computer simulations, and compare these insights with empirical results on transactional data.