Analysis of behavior game between suppliers and their retailers in electricity market by z-Tree

Under the opening environment of the electricity market, it's very important to study bidding strategy to balance the benefit between suppliers and their retailers. At present, machine game is the most popular approach to deal with this problem. However, it's unable to present the practical trade process, for it ignores the humanity of the traders. To overcome this problem, behavior game is used to reflect and trade off the benefit between suppliers and retailers, and experimental economics platform z-Tree is employed to realize this procedure. In this paper, the algorithm based on historical trading data is designed by using z-Tree and simulate the bidding strategies of suppliers and their retailers in different rebate factor. Aforementioned research result shows simulation in z-Tree can reflect the actual electricity market situation and get optimal bidding spread in different rebate factor. It has some significance for suppliers and their retailers for bidding strategies.