curvature of the aggregate demand function. 2) It yields a positive information rent effect exactly when demand is convex. 3 …) Firms benefit from regulatory risk exactly when demand is convex. 4) Consumers' risk preferences tend to contradict the …

compelled to innovate in order to reduce costs. The in uential work of Porter (1990) arguing that competition compels flrms to … literature to date has concentrated on the efiect of competition on managerial incentives or innovation.5 Increased competition …, competition is clearly important, and we account for this by allowing heteroge- neous treatment efiects, permitting the efiect of …