Abstract: In view of the large amount of calculation of the traditional benefit allocation method in the joint operation of cascade multi-agent hydropower stations, and the influence of the depth of marketization on hydropower, a benefit allocation method for joint operation of cascade hydropower stations under market economy is put forward. Firstly, the inflow into the reservoir during joint dispatching is calculated by using the “reduction method”, and the maximum power generation benefit model of cascade hydropower stations under the market economy is solved by improving the electricity generation-electricity price function to fit the market electricity price. Then the information entropy method is used to quantify the complex benefit relationship between cascade power stations under the market economy as the benefit sharing ratio represented by the benefit contribution of each power station, and the competitiveness index method is used to transform the power station characteristic parameters into the benefit sharing ratio represented by the power station competitiveness. The linear weighting method is used to share the benefits of cascade joint dispatching. Finally, the evaluation of satisfaction and the tendency analysis of allocation strategy are used to evaluate the allocation results. The results of Wujiang cascade examples are as follows: compared with objective weight combination allocation method and loss proportion method based on Shapley Value Method, this method is compared with objective weight combination allocation method and loss proportion method for benefit allocation of three power stations and six power stations. The maximum value and the average variance of the allocation strategy tend to be smaller, and the variance of the satisfaction of each subject is the smallest, which shows that the result of benefit allocation is more fair and reasonable. The benefit sharing of three power stations and six power stations requires only four and seven pieces of benefit information respectively, indicating that the calculation efficiency is higher. The allocation results show that this research method can effectively solve the benefit allocation problem of multi-agent cascade hydropower stations with less benefit information, and has some reference significance for realizing the joint optimal dispatching of multi-agent cascade hydropower stations under the market background.