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    How to fix the primaries: Treat them like a market, with delegates as dollars

    It's no secret that states with early primaries or caucuses have had an outsized influence on the outcome of the nomination. Cutting to the front of the calendar is such a boon, particularly given the economic boost that campaigns deliver, that states are willing to sacrifice their influence at the convention in order to hold their contests early. After weighing the benefits, for example, New Hampshire, South Carolina and Florida all chose to violate Republican National Committee rules and hold their primaries earlier than allowed, thus sacrificing half their delegates at the convention.

    Romney in Iowa (AP Photo/Eric Gay)

    There are many reasons why this is a broken system. Without sufficient penalties for states jumping the gun, the next cycle's primaries could easily spill into December of 2015, while states that play by the rules will remain insignificant.  So here at the Signal, we're proposing a simple way to fix this process, while preserving a staggered order of contests: Treat the nomination like a market, and let states bid on how early they want to go.

    The rules are simple: The RNC sets the dates of the primaries ahead of time, with a limited number of coveted early contests. To determine the order, every state says what percent of its delegates it is willing to give up in order to go first. Whichever state is willing to sacrifice the highest proportion wins the first slot. The remaining primary slots would be allocated in much the same way. The states next say what percent of delegates they're willing to forgo to be second in line to vote--presumably less than they would pay to go first, but still a substantial amount. Whoever bids the most for second position wins it, and so on. It's a classic economics problem. We have a commodity--early primaries--that's in short supply and high demand. The delegate market determines how precious those slots are.

    (A useful twist is for the actual penalty incurred by the winner in each round to be the bid of the second-highest bidder--a famous procedure invented by Nobel Laureate William Vickrey that incentivizes actors to bid the actual amount they're willing to pay. Think of this like eBay, where you pay an amount just above what the second-highest bidder offered, not the absolute most you were willing to shell out.)

    A number of questions remain about such a scheme, and I don't pretend to understand all of the consequences. For example, the right protocol is less clear for multi-primary days like Super Tuesday. A tiebreaking rule is necessary: what should happen if two or more states tie for the highest bid for a given primary date? The biggest unknown is just how far some states would go to be first. Would one or more states be willing to give up 100 percent of their delegates, and thus be forced to hold nothing more than "beauty contests," just for the chance to be in the early spotlight? If so, would candidates even bother to campaign there for no tangible prize? If Missouri's recent no-delegate primary is any evidence, candidates are not terribly interested in winning states where nothing is at stake. But the same might not be true if the primary had been held before Iowa.

    Regardless of what you think about auctioning off primary dates, it's clear that the current system is arbitrary and unfair. A few examples:

    • Once Florida moved to January 31, Iowa and New Hampshire scrambled to preserve their "right" to vote first, pushing the first and very influential contests to 10 months before the general election, effectively ruling out any candidate who didn't begin planning well over a year in advance.
    • Florida and Arizona flouted a second rule of the party--they held winner-take-all primaries when every primary before April 1st was supposed to be proportional.
    • The early primary states are whiter than average and unrepresentative in other ways. The preferred candidate for voters in later states may have already dropped out. Voters and donors in later states tend to jump on the bandwagon and support the early-state winner, magnifying the impact of early states.

    A national primary would be fair, but wouldn't allow voters to meet the candidates in a round of traditional "retail politics," and the primary would favor the richest candidates. Rotating the order of states at random would also be fair, but would ignore the fact that some states care more about going first than others.

    The primaries are the playoffs of politics. But the system is as opaque, unfair, and antiquated as the bowl system in men's college football. It's sad that the calls for reform are much louder for the BCS than for democracy.

    David Pennock is a Principal Research Scientist at Yahoo! Research. Follow him on twitter@pennockd.

    Want more? Visit The Signal blog or connect with us on Facebook and follow us on Twitter.

     
    • Plato232425  •  Stockton, California  •  3 mths ago
      People who blather on about the bible and patriotism never go to church and never served their country.

      The quiet ones walk the talk.
      • MarcD 3 mths ago
        So that's evidence that your statement is incorrect.
      • Susan R 3 mths ago
        Plato - You just proved you're a troll and ignorant to boot. You must be home from school today. Only a child would post the things you do.
    • Rosalie  •  3 mths ago
      One Man/Woman one vote. Dump the political parties and primaries
      • Susan R 3 mths ago
        Rosalie - I strongly agree!
    • Blockhead  •  St Francisville, Louisiana  •  3 mths ago
      I wish all states held primaries on the same day.
    • Patty  •  Detroit, Michigan  •  3 mths ago
      Broken system indeed, however this proposed solution only drives it to be broken further by making it earlier and earlier. The primary process starts too early and the first states have undue influence by weeding out candidates. We as a nation spend way too much time obsessing about the presidency. Guess what - there are other things happening in the world. And the media treats it like a sporting event - who's winning, the strategies used by candidates, etc. Much less time spent on actual issues and what candidates would do if elected. And don't get me started on super-pacs, a disgusting perversion of free speech.
    • Frank S  •  Defuniak Springs, Florida  •  3 mths ago
      ron paul has my fla. vote--america needs this mans ideas and suggestions
    • Beachcomber  •  3 mths ago
      Have them all on the same day six months before the national election. Campaigning before then by you or on behalf of you illegal and makes you ineligible.
      • Ryu 3 mths ago
        Well that would kind of eliminate the point of the primaries how is anyone supposed to know whose the best nominee for the party.
    • JasonA  •  3 mths ago
      The primaries are already 'fixed', im just waiting to see who Fox News and CNN nominate.
      • michael 3 mths ago
        Fixed? No way. This is the 21st century. We are the greatest democracy. Who won by the way?
      • JasonA 3 mths ago
        Im still waiting for the Diebold Corp to tell me.
      • Theo A 3 mths ago
        Republicans don't watch CNN. Fox and it's Australian owner will be choosing the republican nominee.
    • Red Herring  •  3 mths ago
      Where has this "journalist" been? They're already fixed, just ask Ron Paul.
      • Allen 3 mths ago
        Just look at Maine.
    • sb14blue  •  Torrance, California  •  3 mths ago
      Wait... I have a horrible idea that makes no sense. Why don't we have all 50 states vote on the same date? I know... I know... it's a bad idea. How selfish of me to want 100% of the votes in before declaring a winner! I'm a shameful idiot for thinking such a concept!
    • david w  •  Traverse City, Michigan  •  3 mths ago
      The heading of this story is exactly my view on these debates,its who gets the money first while it last attitude while the super pac continues to deliver.
    • A Yahoo! User  •  Seattle, Washington  •  3 mths ago
      Amazing how you can post things to Rick Santorum's facebook and they delete them. No other candidate does that. What is he afraid of.
    • sniper assassin  •  3 mths ago
      the corrupt and politicized u.s. supreme court has already chimed in on the economics of political elections... the office of the presidency, congress and governor mansions are for sale to the highest bidders.
    • scott  •  Harrisburg, Pennsylvania  •  3 mths ago
      Have all the primaries on the same day, that way you can get rid of the stupid caucus and no state becomes more important then the next.Hold the election 90 days before the general election.Delegates would then be awarded like electoral votes.
    • Rob  •  Fargo, North Dakota  •  3 mths ago
      We all know that the current system is corrupt as are the candidates on both sides. Until we get someone who isn't bought & paid for by the corporations, we the people are screwed.
    • northern lights  •  3 mths ago
      The wealthy candidates will always have a major advantage. A one-day primary in all states is the best situation...why? Because the quantity of debates and the internet allow for full exposure...free.
    • lambert  •  3 mths ago
      You mean politicians aren't bought and sold now? Did I not get the memo?
    • illini fan 91  •  St Louis, Missouri  •  3 mths ago
      How to fix the primaries: Make sure they're not fixed.
    • Carl  •  3 mths ago
      My biggest complaint in this article is when he states, "Rotating the order of states at random would also be fair, but would ignore the fact that some states care more about going first than others." How the heck would you know since it's never been done that way before. It's a great idea rotate, but no, those state's traditionally 1st would only complain about that.
    • James  •  Sunnyvale, California  •  3 mths ago
      One single primary! A new thing came around several decades ago called a TV. And now they have this cool thing called the internet and social blogs and.... No need for each politician to pander to each state. Let them say exactly what their views are to all states at the same time!
    • Eddie  •  3 mths ago
      How about just set all the primaries on same day, problem solved.

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