Application Of Evolutionary Game Theory In The Power Market

Since 1980,application of evolution theory in the analysis of social economy have increased by means of index, Evolutionary game theory comes from the evolutionary theory of biology, originally, it was erected for explaining animal evolution. How to research evolutionary stable strategy(ESS) and to apply it to practice are becoming the vital question needing to resolve. Based on traditional game theory, the paper explores disadvantage of traditional game theory, the conception of ESS. In the meaning time, it proves ESS in theory. First, the paper introduces the technology of emulation, the application of emulation. It mainly explores the history, trait and structure of Matlab, how to resolve the differential equation is mainly introduced in the section. Moreover, the paper explores the application of Matlab to emulate the evolutionary stable strategy(ESS), and explains the result of emulation. The theory and one of its application in the Electricity market are introduced in the paper. The evolutionary game theory is applied to analyze the spontaneous forming process of the electricity generation enterprises'price competition strategies. A price competition strategy that forms spontaneously corresponds to an evolutionary stable strategy (ESS). The analysis of the evolutionary game model makes it clear that government must formulate reasonable price competition rule to ensure the development of the electricity market. The necessity of government's supervising and controlling electricity market is pointed out, and the idea of formulating the routine of price competition to supply power to grid in China is shown clearly. The main conclusions and some questions for further research are proposed at last.