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August 20, 2020

Hypothesis 1: firms set higher prices (underinvest in marke

Hypothesis 1: firms set higher prices (underinvest in market share) if they have more debt, Hypothesis 2: firms engage in dynamic risk-shifting by setting lower (higher) prices if the currentdebt obligation will be higher (lower) in the next period than in the present periodfind 2 supporting literature each which already prove these hypothesis and summarize the examples that they use to prove those points. also attach the documents available.

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