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This paper proposes a novel assessment framework for estimating short-term financial benefits of demand response (DR) to be delivered to a deregulated power system. First, the framework analyzes DR costs and benefits for participants in a DR market, and for generators and retailers in the electricity trading market. Based on these local analyses, a global evaluation is performed to determine whether the optimized DR can produce a positive social surplus. If so, the DR will be dispatched during the time period under consideration. Case study is given on the Roy Billinton test system (RBTS) to show the usefulness of the proposed assessment framework and to examine its scalability.