Centrism Always Wins

Why does centrism always seem to win? I have prepared a nice little demo we can all do together that will help illuminate why politics tends to drift towards centrism. This is a little bit of game theory and economics. In the case of many models that economics teaches us, there are parallels to other ideas.ย 

Have you noticed that intersections often have multiple gas stations next to each other. You might even notice the same thing with other businesses. Outback steakhouse next to Texas Roadhouse; Waffle House next to IHOP; McDonalds next to Burger King and Wendys. If you observe apparently irrational behavior in economics that is so widespread, then you should investigate why large businesses are throwing their money away. Hint, they are not. There is a reason why everyone rushes to the same position, it is the winning strategy. 

This demo is in debt to two ideas in economics. Hotellingโ€™s Law, which talks about optimal placement of your business to attract customers. The Median Voter Theorem, which brings the same logic of Hotellingโ€™s Law to optimal placement of your policy positions to attract voters.

Take a look at the demo. You can also follow along in the video above.

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