Decentralized lobbying boosts foreign influence on regional policies.
The article explores how companies lobby for public goods in different regions. When firms compete in the market, lobbying is better for society under decentralization. Foreign interests can have more influence on regional policies. When firms compete for the market, lobbying is more effective under decentralization, leading to local monopolies. Splitting responsibilities between the center and regions can be better than full centralization or decentralization.