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Xue Yusheng (Nanjing Automation Research Institute, Nanjing 210003, China)  
Power markets are largely different from other markets in nature. Their differences, which significantly influence the economic dynamics, in goods production, storage, transmission, consumption, trade settlement, auxiliary service and investment etc, are summed up in this paper. The very strong interactions between power market dynamics and power systems stability are investigated as well. With the defined state variables, a frame-model and a simulation platform are proposed for studying the integrated physic-economic power system. The market rules as well as the game strategies are input by participants in forms of logic-difference-differential-algebraic expressions just like what happened in battle simulators. After integrating the established model and obtaining the whole time-responses, the stability-preserving trajectory-reduction method is applied to analyze both bounded stability and structure stability. The key idea is to map the actual time-responses curves into a set of R 2 planes by using suitable linear transformation with stability preserving. Therefore, stability can be quantitatively measured, and routes to both divergence and chaos can be deeply understood.
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