China is in an important stage of electricity market reform. The design of price mechanism in electricity market is one of the core issues of market deregulation. For the bidding mechanism problem which is one of the price mechanism problems, the influence of relative price mechanism and absolute price mechanism on the equilibrium of electricity market is studied.Firstly, a bilevel model is established to simulate the game behaviors in the oligopoly power market under different pricing mechanisms. Subsequently, the model is solved by utilizing the optimality conditions. Finally, based on the case of Guangdong province,scenarios with strategic bidding and without strategic bidding are analyzed. It is found that the relative price mechanism leads to the distortion of unit cost and the increase of generation cost. Compared with the absolute price mechanism, the relative price mechanism can avoid the phenomenon of“free ride”, reduce the demand cost, and inhibit the abusing of market power by strategic generator to some extent.