Question

How is our political system like a market duopoly, and how is it not? Consider structure, behavior, and outcomes.

Economics focuses on rational decision making and incentives. What factors create the political duopoly?

What changes do you think could be made to the structure and incentives to improve the situation?

Answer 1

1.

Our political system is treated as market duopoly, because it is dominated by two parties named as Democratic party and Republican Party. Since long time, the candidates of these two parties, have been selected. But, it may not be a market duopoly, because anybody can contest the presidential election as an independent candidate and there is no any barrier to entry. So, the political structure is dominated by two parties, but they do not create barriers to entry for the anybody who is eligible and wants to contest. So, the outcome suggests that it is duopoly, but other individuals can also participate in the political activities.

2.

The first factor is the agenda and proposal that is put forward by the two parties that is liked by the people and they vote them. It creates political duopoly. The second factor is the support of activists, lawmakers, interest groups, rights group for these two parties and their candidates. It makes political duopoly. the third factor is the method of indirect election where the electors select the candidate, rather public. Hence, the choice becomes narrow and only these two parties come ahead as winner.

3.

The first change should be the increase in the role of public or citizen to select their candidates directly. The second change should be to control the spending limit where these two political parties always remain ahead of the independent candidates and never let others to win.  These two changes will increase the scope of selection of new candidate and change the political situation.