The system of proportional representation (PR) allocates legislative seats based on the percentage of votes each party receives in an election. Unlike winner-takes-all systems, PR allows for a more accurate reflection of voters' preferences within the legislative assembly. This system often results in multi-party representation, encouraging collaboration and compromise among parties. It also enables smaller parties to gain representation, contributing to a more inclusive democratic process. However, PR can sometimes lead to fragmented parliaments and challenges in forming stable governments, as coalitions may be necessary to achieve a governing majority.