The "I+P" Mechanism of Preventing the Regulation Collusion in the Electrical Transmission and Distribution Market

Almost all the existing studies of the regulation capture in electrical transmission and distribution market are limited to empirical description due to the lack theoretical analysis tools.Based on the analysis framework of the Organization Collusion theory,this paper establishes a three-tier agent model of "government/supervisor/firm".Considering an punishment device in incentives(Short for "I+P"),we design a "I+FP" and "I+VP" mechanism of preventing regulation collusion in the electrical transmission and disuribution market.Further,the paper compares the outcomes of the different enterprises and the efficiency of anti-collusion in the two mechanisms.As a result,this study is of great implication to the current electrical transmission and distribution reforms.