Does WP identify plugin by plugin name or plugin_basename?

Plugins are identified by the path to the file containing the plugin headers. For instance the debug bar plugin would be identified as: debug-bar/debug-bar.php

See activate_plugin

To add an action on activation you need to register the hook using register_activation_hook( $file, $function )

example: register_activation_hook( __FILE__, 'activation_function' );