diff --git a/.auto-claude-security.json b/.auto-claude-security.json
new file mode 100644
index 0000000..d0fad11
--- /dev/null
+++ b/.auto-claude-security.json
@@ -0,0 +1,154 @@
+{
+  "base_commands": [
+    ".",
+    "[",
+    "[[",
+    "ag",
+    "awk",
+    "basename",
+    "bash",
+    "bc",
+    "break",
+    "cat",
+    "cd",
+    "chmod",
+    "clear",
+    "cmp",
+    "column",
+    "comm",
+    "command",
+    "continue",
+    "cp",
+    "curl",
+    "cut",
+    "date",
+    "df",
+    "diff",
+    "dig",
+    "dirname",
+    "du",
+    "echo",
+    "egrep",
+    "env",
+    "eval",
+    "exec",
+    "exit",
+    "expand",
+    "export",
+    "expr",
+    "false",
+    "fd",
+    "fgrep",
+    "file",
+    "find",
+    "fmt",
+    "fold",
+    "gawk",
+    "gh",
+    "git",
+    "grep",
+    "gunzip",
+    "gzip",
+    "head",
+    "help",
+    "host",
+    "iconv",
+    "id",
+    "jobs",
+    "join",
+    "jq",
+    "kill",
+    "killall",
+    "less",
+    "let",
+    "ln",
+    "ls",
+    "lsof",
+    "man",
+    "mkdir",
+    "mktemp",
+    "more",
+    "mv",
+    "nl",
+    "paste",
+    "pgrep",
+    "ping",
+    "pkill",
+    "popd",
+    "printenv",
+    "printf",
+    "ps",
+    "pushd",
+    "pwd",
+    "read",
+    "readlink",
+    "realpath",
+    "reset",
+    "return",
+    "rev",
+    "rg",
+    "rm",
+    "rmdir",
+    "sed",
+    "seq",
+    "set",
+    "sh",
+    "shuf",
+    "sleep",
+    "sort",
+    "source",
+    "split",
+    "stat",
+    "tail",
+    "tar",
+    "tee",
+    "test",
+    "time",
+    "timeout",
+    "touch",
+    "tr",
+    "tree",
+    "true",
+    "type",
+    "uname",
+    "unexpand",
+    "uniq",
+    "unset",
+    "unzip",
+    "watch",
+    "wc",
+    "wget",
+    "whereis",
+    "which",
+    "whoami",
+    "xargs",
+    "yes",
+    "yq",
+    "zip",
+    "zsh"
+  ],
+  "stack_commands": [],
+  "script_commands": [],
+  "custom_commands": [],
+  "detected_stack": {
+    "languages": [],
+    "package_managers": [],
+    "frameworks": [],
+    "databases": [],
+    "infrastructure": [],
+    "cloud_providers": [],
+    "code_quality_tools": [],
+    "version_managers": []
+  },
+  "custom_scripts": {
+    "npm_scripts": [],
+    "make_targets": [],
+    "poetry_scripts": [],
+    "cargo_aliases": [],
+    "shell_scripts": []
+  },
+  "project_dir": "C:\\Users\\Yolan\\AI Projects\\autoclode",
+  "created_at": "2026-01-22T12:53:54.650676",
+  "project_hash": "0dd5e213343565ec02a915905d49e28a",
+  "inherited_from": "C:\\Users\\Yolan\\AI Projects\\autoclode"
+}
\ No newline at end of file
diff --git a/.auto-claude-status b/.auto-claude-status
new file mode 100644
index 0000000..88f71eb
--- /dev/null
+++ b/.auto-claude-status
@@ -0,0 +1,25 @@
+{
+  "active": true,
+  "spec": "002-synthetic-consumer-generation-engine",
+  "state": "building",
+  "subtasks": {
+    "completed": 1,
+    "total": 15,
+    "in_progress": 1,
+    "failed": 0
+  },
+  "phase": {
+    "current": "Project Setup and Dependencies",
+    "id": null,
+    "total": 3
+  },
+  "workers": {
+    "active": 0,
+    "max": 1
+  },
+  "session": {
+    "number": 3,
+    "started_at": "2026-01-22T13:07:55.685537"
+  },
+  "last_update": "2026-01-22T13:13:51.277854"
+}
\ No newline at end of file
diff --git a/.claude_settings.json b/.claude_settings.json
index f172ffb..3b7e59f 100644
--- a/.claude_settings.json
+++ b/.claude_settings.json
@@ -11,14 +11,19 @@
       "Edit(./**)",
       "Glob(./**)",
       "Grep(./**)",
-      "Read(C:\\Users\\Yolan\\AI Projects\\autoclode/**)",
-      "Write(C:\\Users\\Yolan\\AI Projects\\autoclode/**)",
-      "Edit(C:\\Users\\Yolan\\AI Projects\\autoclode/**)",
-      "Glob(C:\\Users\\Yolan\\AI Projects\\autoclode/**)",
-      "Grep(C:\\Users\\Yolan\\AI Projects\\autoclode/**)",
-      "Read(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\specs\\001-marketsim/**)",
-      "Write(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\specs\\001-marketsim/**)",
-      "Edit(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\specs\\001-marketsim/**)",
+      "Read(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine/**)",
+      "Write(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine/**)",
+      "Edit(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine/**)",
+      "Glob(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine/**)",
+      "Grep(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine/**)",
+      "Read(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine\\.auto-claude\\specs\\002-synthetic-consumer-generation-engine/**)",
+      "Write(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine\\.auto-claude\\specs\\002-synthetic-consumer-generation-engine/**)",
+      "Edit(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude\\worktrees\\tasks\\002-synthetic-consumer-generation-engine\\.auto-claude\\specs\\002-synthetic-consumer-generation-engine/**)",
+      "Read(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude/**)",
+      "Write(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude/**)",
+      "Edit(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude/**)",
+      "Glob(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude/**)",
+      "Grep(C:\\Users\\Yolan\\AI Projects\\autoclode\\.auto-claude/**)",
       "Bash(*)",
       "WebFetch(*)",
       "WebSearch(*)",
diff --git a/marketsim/__init__.py b/marketsim/__init__.py
new file mode 100644
index 0000000..3b528d2
--- /dev/null
+++ b/marketsim/__init__.py
@@ -0,0 +1,8 @@
+"""
+MarketSim: A synthetic consumer behavior generation engine.
+
+This package provides tools for generating realistic consumer behavior patterns
+based on psychological models and market dynamics.
+"""
+
+__version__ = "0.1.0"
diff --git a/marketsim/generators/__init__.py b/marketsim/generators/__init__.py
new file mode 100644
index 0000000..63bc9ac
--- /dev/null
+++ b/marketsim/generators/__init__.py
@@ -0,0 +1,6 @@
+"""
+Consumer behavior generators.
+
+This module contains generators for creating synthetic consumer behavior
+patterns and interactions.
+"""
diff --git a/marketsim/models/__init__.py b/marketsim/models/__init__.py
new file mode 100644
index 0000000..8ef373b
--- /dev/null
+++ b/marketsim/models/__init__.py
@@ -0,0 +1,6 @@
+"""
+Data models for MarketSim.
+
+This module contains the core data models representing consumers, products,
+and market entities.
+"""
diff --git a/marketsim/psychology/__init__.py b/marketsim/psychology/__init__.py
new file mode 100644
index 0000000..3d86867
--- /dev/null
+++ b/marketsim/psychology/__init__.py
@@ -0,0 +1,6 @@
+"""
+Psychological models for consumer behavior.
+
+This module implements psychological frameworks that influence consumer
+decision-making and behavior patterns.
+"""
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..24a590c
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,15 @@
+# Core dependencies for synthetic consumer generation
+pydantic>=2.0.0,<3.0.0
+numpy>=1.24.0,<2.0.0
+scipy>=1.10.0,<2.0.0
+faker>=18.0.0,<19.0.0
+
+# Agent-based modeling framework
+mesa>=2.0.0,<3.0.0
+
+# Statistical modeling
+statsmodels>=0.14.0,<1.0.0
+
+# Testing dependencies
+pytest>=7.4.0,<8.0.0
+pytest-cov>=4.1.0,<5.0.0
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 0000000..dea197b
--- /dev/null
+++ b/tests/__init__.py
@@ -0,0 +1,3 @@
+"""
+Test suite for MarketSim.
+"""