[Brockenstein]

>But the chosen city would win even more if they were to cooperate.

Right and the 19 losers are cooperating why again?

>Sure, the cooperation would quickly break down

Good job undercutting and highlighting the faults in your own argument. If you can figure it out in two sentences I think there's probably a few people directly involved who this is obvious to. So since cooperation isn't viable in your own estimation, might as well try to win.

>but that is why the federal government should decide on such benefits

Unfortunately that proposition doesn't appeal to everyone, so good luck there.