Institutional designs to reduce the external costs of democratic selection

The Chinese democratic selection mechanism must accommodate characteristics of Chinese society where it faces a variety of problems caused by external costs. Thus, this paper analyzes voting mechanisms from the viewpoints of public choice and institutional economics. The exterior impact on human resources was analyzed using the utility function model. Then game theory was used to analyze participating subjects in democratic selection to determine their different participation strategies. From this, a matrix of individual incomes and total welfare was derived. The authors discussed the income cost of selection behaviors under all conditions and explained the mechanisms producing external costs. Finally, an institutional design for reduction of external costs in democratic selections was proposed from the perspective of defining the right of democratic selection, etc. Analysis showed that properly designed incentives and restrictive mechanisms can decrease the costs of democratic selection. This not only has reference value for a democratic selection system, but also has political implications, giving a better understanding of future democratic options for our country.