You’d need two parties too stupid to figure out how to win elections, and the party in power. Pretty quick the two losing parties would negotiate a barely tolerable platform. The party in power would figure out how much they’d have to compromise to attract just enough of the splinter parties members, and then there’d be two parties with both having a chance of winning.
TL;DR: We have two parties because third parties sell out for a seat at the table.
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