• This paper takes the community electricity trading market with multiple prosumers participating at the distribution network level as the research object, fully considering the impact of the psychological gap effect of prosumers on system operation from a micro-perspective, and proposes a distributed electricity market trading mechanism based on the Stackelberg game, which in order to provide new ideas for the improvement and optimization of the distribution-side electricity market trading system, and the core findings of the paper are as follows:. • The trading mechanism proposed in this paper could better schedule translatable loads and energy storage units, reduce the fluctuation amplitude of the load curve while performing peak cutting and valley filling, stimulate the flexibility of user-side resources, and ensure the stability of system operation. • The trading mechanism proposed in this paper could obtain more evidence-based and reasonable prices for purchasing and selling electricity within the region, ensuring that the distribution network operator could obtain considerable profits while effectively improving the profits of prosumers, which is conducive to improving the economic efficiency of system operation. • In terms of the impact of the gap effect on the energy utility and profits of prosumers, the larger the gap effect coefficient (prosumers are more sensitive to expected deviations), the lower their electricity utility and overall profits, and when the individual electricity utility and overall profits of prosumers are too low, they may withdraw from market transactions. Therefore, government departments could implement policies, such as providing subsidies and adjusting taxes, to further stimulate the enthusiasm of prosumers to participate in distributed market transactions. With the large-scale customer-side development of distributed energy and continuous advancements in power market reform, the market-oriented trading of distributed power generation with the participation of prosumers has gradually become an important solution to promote the consumption of distributed energy. In addition, prosumers exhibit obvious bounded rationality characteristics; therefore, the design of efficient and reasonable trading mechanisms determines the efficiency of the market. From this perspective, a distributed electricity market trading mechanism based on the Stackelberg game is proposed for the community electricity trading market, with multiple prosumers participating in the distribution side. Firstly, the trading architecture of the community electricity market was established under the distribution network level. Secondly, the pricing strategy of the distribution network operator and the quantitative strategy of community prosumers were analysed; on this basis, the characteristics of the bounded rationality of prosumers were considered, and the impact of the psychological gap effect of prosumers on their energy utility was introduced into the objective function of prosumers. This facilitated the construction of a Stackelberg game model in which distribution network operators lead and community prosumers follow. Thirdly, the Stackelberg equilibrium was proven to exist and be unique, which was then solved by the distributed algorithm – combining the evolutionary algorithm and quadratic programming – which improves the solution efficiency and effectively protects the privacy of prosumers. Finally, the effectiveness and feasibility of the proposed trading mechanism were verified through numerical examples. [ABSTRACT FROM AUTHOR]