Comment by qsera

Regulations can work if bypassing the regulation in question does not open up a market that is large enough to keep paying off the regulators.

For example, if there is only one regulator for a country, the companies can pay millions to get it eased up for them, because they can make billions from it.

But if there one regulator for each state, they equation will change and it might not be profitable to pay millions to a regulator of the state, because they cannot make enough profit from selling in the state to justify it.

That is the only way to make it work. Rules don't work forever. Incentives do.