Research Article

Study on the Compliance Management of the Electricity Market in China Based on the Evolutionary Game Theory

Table 1

Notation.

ParametersDescriptionsRange

Probability of noncompliance of the power generator
Probability of lax inspection of the compliance department
Probability of supervision of the government regulatory agency
Strict inspection costs of the compliance department
Lax inspection costs of the compliance department
Psychological cost of the power generator
Psychological cost of the compliance department
Benefits of noncompliance of the power generator
Rent-seeking costs of the power generator
Fines imposed by the government regulatory agency on the power generator
Fines imposed by the government regulatory agency on the compliance department
Losses suffered by the power generator after its violations are revealed
Losses suffered by the compliance department after its violations are revealed
Reputation gains of the compliance department by disclosing rent-seeking behavior of the power generator
Supervision costs of the government regulatory agency
Benefits from prestige increase of the government regulatory agency
Losses of prestige after failing to discover market violations