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Most of the time, electors cast their votes for the candidate who has received the most votes in that particular state. Some states have laws that require electors to vote for the candidate that won the popular vote, while other electors are bound by pledges to a specific political party. However, there have been times when electors have voted contrary to the people's decision, and there is no federal law or Constitutional provision against it.
Why do we have this system? The reason is that the smaller states want to keep some power. If we had no Electoral College, all the political power would be in the biggest states.
People in less populated states might as well stay home and not even vote. The candidates would not pay any attention to the "small" states as they campaigned - why bother?! All the people who live outside the "big" states would feel like they weren't even part of the country because they would have no "voice" in choosing their president