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\section{Introduction}  In recent years, several scientific and political controversies have arisen regarding the market introduction of new products and/or new technologies. products/technologies.  Key examples are genetically modified organisms and hydraulic fracturing to extract shale gas. In both cases, a common feature is that the regulatory decision to approve, or to ban, the new product and/or new technology, faces the challenge of balancing large economic profits against uncertain (and possibly huge) environmental and/or health detrimental effects. The stylized fact is that this has lead to large differences in regulations among countries, which may reflect the preferences of various interest groups involved in the process.  \footnote{See Vigani and Olper (2013), for genetically modified organisms, and Johnson and Boersma (2012), for hydraulic fracturing to extract shale gas.}