Law Commons^™

Speeding Up The Crawl To The Top, Michael B. Abramowicz

GW Law Faculty Publications & Other Works

The literature on competition in corporate law has debated whether competition is a "race to the bottom" or a "race to the top.” This Article endorses the increasing scholarly consensus that competition improves corporate law but argues that the pace of innovation in corporate law is likely to be slow. Because benefits of corporate law innovation are not internalized, neither states nor firms will have sufficient incentives to innovate. That competitive federalism is “to the top" suggests that the model could be applied beyond the corporate charter context, for example to areas such as bankruptcy, but that benefits from such …