We report the observation of the quantum effects of competing chi((2))
nonlinearities. We also report classical signatures of competition, n
amely, clamping of the second-harmonic power and production of nondege
nerate frequencies in the visible. Theory is presented that describes
the observations as resulting from competition between various chi((2)
) up-conversion and down-conversion processes. We show that competitio
n imposes hitherto unsuspected limits to both power generation and squ
eezing. The observed signatures are expected to be significant effects
in practical systems.