Electoral systems significantly impact party competition by determining how votes translate into seats in legislative bodies. Different systems, such as plurality, proportional representation, or mixed systems, encourage varying levels of competition among parties. For instance, proportional representation often leads to a multiparty system and coalition governments, allowing smaller parties to have a voice, while plurality systems may favor larger parties and create a two-party dynamic. These structures influence the political landscape, affecting voter choice, party strategies, and overall representation in governance.