The weak link here is considering power laws as an overarching category without recognizing the underlying conditions.
The impact of asymmetric returns is intrinsically linked to liquidity and capital flexibility, which can be exacerbated or mitigated by the regulatory environment.
In jurisdictions like the Cayman Islands, where investment vehicles are optimized for tax neutrality, the influence of power laws is maximal.
However, strict capital controls or exit restrictions in other regions could downgrade this dynamic, making decision quality much more dominant, for example, for a Ghanaian startup struggling to export its profits.