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Notes -
Not really. If it was an obviously large number set at an obviously round number, it would be pretty unlikely that it was set based on regulatory capture.
AFAICT 116 square inches originates with California rules issued in 2013. I would assume that other states copied the number because it's the smallest number that still grants access to the Californian market (previous laws required compliance with prop 2 (2008) to sell eggs in California, which didn't actually specify a cage size but it seems producers mostly play it safe and follow the 116 square inch rule). Maybe you can blame California for making up a dumb number, but that's not why other states are following suit now.
Since then, Washington and California have passed a law requiring 144 square inches (which I am sure will be unobjectionable to the OP since this is a round number) with a lengthy phase in (so no, the investments don't disappear overnight).
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