Codetermination in the U.S. may entail reducing the flexibility of corporate law, i.e. enacting more regulations, in order to prevent regulatory arbitrage.

From the source: "One of the less obvious costs of codetermination lies in the need to reduce the flexibility of corporate law to prevent regulatory arbitrage. Corporations may seek to find some way around the mandatory codetermination rules, and thus lawmakers need to adopt additional mandatory rules to prevent the codetermination regime from being circumvented.”

theoretical