A leader-follower game between power retailers and residential users is established to study the demand response problem in residential grid with multiple retailers. In this model
the price competition among power retailers is formulated as a non-cooperative game
while the power coordinate among the residential users is formulated as an evolutionary game considering the private information of power retailers and residential users. The existence of leader-follower game equilibrium is proved and the algorithm is designed to implement the convergence of equilibrium and obtain the equilibrium solution. Numerical results show that the proposed algorithm can fast convergence and has the extendibility. On the other hand
the demand response behaviors based on price between power retailers and residential users are helpful to realize power supply and demand balance
so as to maintain the safe operation of the power systems.