1. From a legal perspective, even though the European Union is not a federal system, we consider it as one for the sake of simplicity.
2. C.M. Tiebout, ‘A Pure Theory of Local Expenditures’, 64 Journal of Political Economy (1956) p. 424.
3. R. Romano, ‘Law As a Product: Some Pieces of the Incorporation Puzzle’, 1 Journal of Law, Economics and Organization (1985) p. 283. See also R. Romano, The Genius of American Corporate Law (Washington DC, AEI Press 1993). To be sure, the literature on regulatory competition in corporate law has grown enormously in recent years, in both the US and the EU. For a useful compilation of the literature, see K. Kocaoglu, ‘A Comparative Bibliography: Regulatory Competition on Corporate Law’, Georgetown Law Working Paper (2008), available at http://www.ssrn.com.
4. See section 3.2.
5. See section 3.3.