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I cannot disagree on both counts Ollie and Mtn., in fact and this is just a thought here, does the Republican Party or Democrat Party actually represent the majority of Americans anymore? Perhaps thats a better question.
To be honest, if we were to have a serious third party, I doubt an party could capture the imaginations of 40% of the population.
Run offs could become a norm in most elections
Worst, how would the electoral college select a president?
On your first point, I don't think having runoff's because of a viable 3rd party is bad thing because it might tell both parties that they need play more towards the center than to the extreme left or the the extreme right. On your next point the electoral college will work the same way it does now, the states won by a 3rd party candidate will win the electors in that state, or in those states that parse them out they will when whatever percentage they capture.