Ubitquin,
2. yes.
3. “The Chavot Ya’ir reasons that David considers this trait a sign of piety precisely because it is technically permitted (as long as one is a local resident). David commends one who refrains from competing with his friend for going beyond the letter of the law.11 The Pitchei Teshuvah also cites the Beit Efrayim (Choshen Mishpat 26-27), who writes that common practice in his community was apparently not to follow the Aviasaf’s view. His community permitted entrepreneurs to open new hotels at the city gate, despite the fact that all who entered the city saw the new hotels before seeing the older hotels inside the city.12
Some authorities are even more lenient about competition. The Beit Efraim (C.M. 26) rules against the Aviasaf’s view, and the Tel Aviv Beit Din (Piskei Din Rabbaniyim 4:9-32) also leans this way.”