Metaverse, SED Model, and New Theory of Value

The metaverse concept constructs a virtual world parallel to the real world. The social economic dynamics (SED) model establishes a systematic model for social economic dynamics simulation that integrates macroeconomy and microeconomy based on modeling mechanism of the new theory of value by analogy with Newtonian mechanics and the modeling approach of Agent-based computational economics. This article describes the SED model’s modeling mechanisms, modeling rules, and behavior equations. At the same time, this article introduces the methods, testing standards, and some typical cases about using the SED model to generate the economic digital twin systems. By doing so, we hope to demonstrate that the method of computer simulation experiment based on the SED model is a scientific empirical method, which has more advantages than the existing empirical research methods in economics. The SED model, which can be fully used to form an economic engine and construct a virtual economic system by digital twin method, can be integrated with the extant physical engine in the metaverse concept to build a virtual world consisting of physics, economy, culture, and politics that is close to and coexists with reality.