powerful interest groups able to lobby the EU policymakers. Persson and Tabellini (1994) argue that political centralization … will increase the size of the government through lobbying because of free-riding incentives created by federally funded … the incentives to lobby. The result is an unchanged budget under centralization. Moreover, it is shown that if the …

(centralization) or two (decentralization) regulatory authorities, when the regulator(s) can be partially captured by industry. Under … that centralized regulation is preferable. Under asymmetric information about the firms' costs, lobbying induces a unique … between the goods is high enough, the firms' lobbying activity may be so strong that decentralizing the regulatory structure …