Abstract In markets with competing interconnected networks like mobile telecommunication markets investments affect the … investor’s and also any competitors’ profits. In a theoretical model it is shown that cost-reducing investments reduce the …, investments increase off-net traffic from the investor’s network but also from competitors’ networks. Regulation changes the …

engage in quality investments more if the ex ante quality level of the high quality product is large enough; otherwise, only … competitive firms diminishes the incentive of the mid-quality firm to engage in quality investments. …

frictions, both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments … case of investments in homogenous capital only the agents on the short side acquire ownership of capital. There is always …

unbundling are still advantageous when we allow for discriminatory capacity investments, investments into marginal cost reduction … and investments into network reliability. If access prices are unregulated, however, legal unbundling may be quite …

frictions, both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments … case of investments in homogenous capital only the agents on the short side acquire ownership of capital. There is always …