Study On The Bidding Strategy Of Chinese Power Generation Enterprise Based On Game Theory

In the process of Chinese power industry reform, the competition has beenintroduced into power generation market in order to improve the efficiency ofelectricity production and promote the development of power industry. As aindependent economic entity, the power generation enterprise can maximize ownprofit by bidding strategy. It is an important topic to study on the optimal biddingstrategy of power generation enterprise in the context of power generation market.With the more important theoretical value and practical significance, the researchof the bidding strategy of power generation enterprise is helpful in analyzing thebidding behavior of power generation enterprise, can provide scientific guidelinefor their efficient market competition, and win competition in the bidding process.The dissertation first introduces the characteristics, structure and operatingmodes of power market, analyzes operating conditions from trade pattern, tradetypes, settlement types and bidding pattern, then points out main problems ofChinese power market, and studies the development trend of the power market inChina. Game theory is used to study on the bidding strategy of Chinese powergeneration enterprise by the comparison of bidding methods. The bidding processof power generation enterprise in power market is analyzed based on the biddingrules. The power market is an oligarch competitive market with incompletenessinformation, and the sealed-bid auction is used in power market. The biddingprocess of power generation enterprise in power market is static game withincompleteness information. Bayesian game model for power generationenterprise’s electricity bidding is constructed by using the sealed-bid auctionprinciple of game theory, and the optimal bidding strategy of power generationenterprise is obtained by through solving the Bayesian Nash equilibrium. Thenthe power generation enterprise’s optimal bidding strategy selection analysis under the constraints. Competition and cooperation strategies were discussed inthe bidding process of Chinese power generation enterprise. Finally, thestrategies which guarantee power generation enterprise’s electricity bidding areraised.