This paper deals with a regional demand response method based on dynamic electricity pricing in a multi-period energy market. In the proposed method, first, the power demand and supply in each area are determined considering power flow using the retail and wholesale electricity prices in a day-ahead market. Next, to adjust for power deviations caused by errors in power generation, our proposed method solves the problem of optimal allocation between power demand reduction by consumers and increased power supply from balancing generators in a real-time market. This paper also shows a distributed algorithm for obtaining the optimal values of each market player in both the day-ahead and real-time markets, and finally, numerical simulation results demonstrate the effectiveness of the proposed method.