This paper presents the analysis of the interaction between dynamics of power market， investment market and power systems， and proposes a framework to enable the simulation study. Based on the methodology of experimental economics， on one hand， mathematical models are developed to describe the market structure and market rules， on the other hand， the strategy or decisions of power market participants and independent system operator（ISO） are acted as inputs of the mathematical models to analyse their interactions in the market place. An instability risk is defined to convert the power transmission congestion， applied on the power trading constraints， to the financial risk of the participants. The paper also proposes establishing a simulation platform to implement the simulation study on the interaction between power market and power system dynamics， and to coordinate the solutions to the technical issues of power market and power systems， via a predictive trade congestion management model for market control.