Policy dissemination: observing the policy response in peer jurisdictions helps a politician to make the right choice

Beliefs update – actions of another policy maker indicate which signal that policy maker receivedbeliefs update from observing neighbors
Cost reduction – both technological and political costs of implementing a strict policy are lowered for the politician after it is implemented in another jurisdiction

Arrival of additional information that either repeats or strengthens the original signal

If the same signal is repeated again, a politician has another chance to receive itadditional signals
If a new, stronger signal is sent, the chance that the politician will receive it is higher than in the previous period with a weaker signal

Likely negative factors due to policy redundancies 

Implementation inefficiencies  

- due to replicating efforts within jurisdictions
- due to outbidding for resources

Enforcement inefficiencies  

- due to inter-jurisdictional policy discrepancies
- due to ‘arbitrage’ opportunities for economic agents
Suboptimal policy design in local jurisdictions due to their resource limitations
Policy inconsistency and ambiguities if policy-makers at different levels articulate conflicting approaches and implement contradictory enforcement