Abstract:Different strategies of generation companies under different settlements are introduced.Based on the principle of first price sealed auction,the optimal game mod els of bidding strategy in deregulated generation power market under two different conditions,the settlement method of market clearing price(MCP) and the settlement method of pay..as--bid are presented respectively.The variation of social surplus(welfare)is compared under the two different conditions of bidding strategies.It is indicated
that the settlement method of pay..as..bid adopted will result in the dead weight loss of society welfare