top,” won by the state with the best set of laws. We’ve seen this in corporate law, where Delaware won the race and became the “home of corporations.”12 It also seems to happen in contract law, with bargainers choosing to opt out of California law in favor of more efficient New York law.13 On the other hand, jurisdictional competition can also be a race to the bottom. Mississippi’s legal rules may be wasteful, but other states might seek to copy them in order to stick it to their out-of-state defendants. Neither of these races, to the top or to the bottom, can happen in federal countries with
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