I wouldn't use the word "defrauding," but there is a serious principal-agent problem. The localities that attract an Amazon or an Apple are likely to have winne

I wouldn't use the word "defrauding," but there is a serious principal-agent problem. The localities that attract an Amazon or an Apple are likely to have winner's curse. That is, the highest bid (in terms of tax breaks and other concessions) for the new headquarters is likely to be from a place that incidentally overvalued the new HQ. The politicians usually know this, but don't care. They get a flashy, public "victory" to campaign on, even if the real value to the local economy is questionable.