Final answer:
Reliance on mutual promises is critical in a two-party system. Third parties can play an essential role in upholding these promises or acting as mediators. Trust is difficult to rebuild once it is broken, as illustrated by the prisoner's dilemma in game theory, and collateral can similarly serve as a promise of quality in goods markets.
Step-by-step explanation:
When two parties rely upon the promises of the other, they are engaging in a fundamental principle of a functioning two-party system. This system often necessitates a certain level of mutual trust and the idea that both groups will act in accordance with their stated promises. In the context of politics, such reliance is seen in the campaign pledges made by political parties and their candidates, who traverse the country seeking to win the favor of party members and the electorate.
However, issues such as coverage or the cost of college education often become areas where each party must outline their stance and respond to unforeseen events based on these stances. Furthermore, the introduction of a third party into this dynamic can serve multiple roles, acting as a guarantor of promises, a mediator in disputes, or even as a 'safety valve' within the political system to ensure that parties do not deviate too far from what is expected or promised.
This delicate balance can be disrupted, as seen in game theory's prisoner's dilemma, where if one party defects, it becomes challenging to rebuild trust and encourage future cooperation without the intervention of a third party to enforce or induce cooperation.
Similarly, collateral in the goods market can play a role analogous to promises in politics. Sellers may offer a money-back guarantee, which serves as an implicit promise of quality, to instill confidence in buyers, particularly when the transaction occurs through channels where the buyer cannot physically inspect the product, such as online sales.