A two-echelon supply chain network competition and coordination decision model for generation companies and power suppliers based on Game Theory

Gradual deepening reformation of power system and formation of the electricity market in the power industry, the enterprises in supply chain nodes become the real competitors in electricity market. The supply chain management becomes effective means to adapt to the market economy; power enterprises must access to the core competitiveness of enterprises. This paper uses the Game Theory to develop a supply chain model comprising two generation companies and one power supplier, and analyzes the competition and coordination between them, then builds up mathematical models under the two situations and compares the influence in the income of generation companies and power suppliers.