A party system refers to the way political parties are organized and interact within a political framework. It typically describes the number of parties that compete for power and the relationships between them. Common types include a two-party system, where two major parties dominate, and a multi-party system, where several parties have significant influence. The structure of a party system can affect governance and policy-making. In a two-party system, like that of the United States, parties often have to appeal to a broad range of voters. In contrast, a multi-party system, such as in Germany, allows for more diverse representation but can lead to coalition governments.