Effect of government supervisor′s regulation on transmission and distribution markets under asymmetric information

Based on the characteristics of the transmission and distribution market,a model of value flow of the market was established.It was then used to analyze the effect of government regulator′s regulation aiming at maximizing social surplus expectation when the government regulator does not carry out cost inspection.Also,the mixed strategy Nash equilibrium was applied to analyzing the cost regulation probability of the government regulator to prevent enterprises from false cost reporting,as well as the expected regulation effect.Calculation examples were also conducted.