It is an important method to reveal the operation law of electricity wholesale and retail markets by quantifying the interaction mechanism between them from the perspective of whole system. Based on the system dynamics method

a simulation model is established including three power generators

three retailers

two retail offers(fixed price contract and real-time response to price contract)

day-ahead market

real-time market

Lerner index and average spot price evaluation index. The interaction between electricity wholesale and retail market is simulated. The results show that: in the monopoly scenario

the average spot price level and retailer's risk level under partial power participation in the spot market are lower than those under full power participating situation; in the competition scenario

retailers can shift peak load and stabilize wholesale market price by guiding users' electricity consumption through retail price packages; the transmission and distribution cost allocation method based on peak load can smooth system load curve and raise the level of retail competition through influencing retailer's strategy

while provide more profit for high-quality retailers. This work is supported by State Grid Corporation of China(No. SGERI06KJ(2013)51)and Fundamental Research Funds for the Central Universities(No. 2104QN07).