Political parties are like firms in the marketplace. The same principles that drive the behavior of firms drive the behavior of political parties. They collude if they can, and gain from their collusion at the expense of the consumers.
Here I will outline my conjecture about the two major national political parties in India. If you are a supporter of either the Congress or the BJP, you may be disappointed by my analysis. Especially if you are a BJP supporter, you may wish to skip this post. BJP is complicit in Congress’s crimes.
In the following, I will lay out briefly how markets are structured (to take up where I left off in my previous post on the matter) and then reason analogically that the BJP and the Congress are not competing but rather they are colluding.
Continue reading “Market Structure, Political Parties and Collusion”