The term ‘market politics’ is coined to highlight the role of competition in the political field, drawing an analogy with the familiar concept of the market economy. By using this analogy, the concept of market politics seeks to make the dynamics of political competition more understandable and palatable. A political system can be characterised as market politics to the extent that it exhibits the following five institutional features: 1) decentralised public authority: separations of state power between central and local governments and among legislative, executive and judicial branches are robust; 2) voting mechanisms: the selection of officeholders and decisions on policies and major issues reflect people’s preferences through voting; 3) Freedom of expression and the free flow of information; 4) open political participation; and 5) rule of law: general constitutional rules are enforced and equal political rights are guaranteed, while decision-making is not monopolised by a single authority. By allowing multiple political actors to compete on a transparent platform, political systems can improve information flows, encourage policy innovation, and sustain and enhance the vitality of political democracy.
