We investigate how various institutional settings affect a network provider’s incentives to invest in infrastructure quality. Under reasonable assumptions on demand, investment incentives turn out to be smaller under vertical separation than under vertical integration, though we also provide...

This study was prepared by Andreas Kuhlmann, while he was working with the Ifo Institute for Economic Research. It was completed in September 2006 and was accepted as a Ph.D. thesis by the Economics Department of the University of Munich. The subject of this study is the analysis of network...