Three-win Strategies of Generation Rights Trade with Employment Participation of Exchange Center

The paper analyzes the problems of high frequency trade, asymmetrical information and market imperfection in present generation rights trade mechanism. Generation rights models are proposed without Exchange Centerpsilas participation and with its employment participation respectively under asymmetrical information condition based on principal-agent theory with an agentpsilas participation in order to utilize abandoned water more adequately in the electricity market with plenty of hydropower resources. Then the paper studies the configuration of incentive contract, discusses the influence over participatorspsila risk coefficients and effort level in generation rights trade, and compares profits of participators in different generation rights trade models. Numerical results show that different incentive contracts in principal-agent models can guide participators to obtain optimal revenues and increase total utility of electric power system.