Jurisdictional competition adapts legal rules to changed economic circumstances faster than harmonization does, because a single jurisdiction can change its rule unilaterally whereas harmonized regimes require all jurisdictions to agree on a rule before it can change.
Source quote, verbatim
When underlying economic circumstances change, it is more likely that a jurisdiction will change its rules if there is juris- dictional competition than if all jurisdictions are bound to agree upon the same rule before they change it.
From
Wulf A. Kaal, Richard W. Painter, Forum Competition and Choice of Law Competition in Securities Law after Morrison v. National Austral (2012), I. The Fundamentals of Jurisdictional Competition, p. 15 https://ssrn.com/abstract=2029983 · source PDF
Cite as
Wulf A. Kaal, Richard W. Painter, Forum Competition and Choice of Law Competition in Securities Law after Morrison v. National Austral (2012). SSRN: https://ssrn.com/abstract=2029983
Holds when
underlying market conditions are changing
actors have imperfect information about optimal rules
supportskaal:claim:1998455-026 Harmonization and coordination can facilitate experimentation and learning, but experimentation is most effect...
restateskaal:claim:1998455-027 Where jurisdictions are not compelled to agree on the same rule, some jurisdiction will try a different rule, ...
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