This paper studies the investment decision by a monopolistic internet service provider (ISP) in different regulatory ….s investment incentive and social welfare. Furthermore, the investment level is higher if the regulated ISP is allowed to charge … the CPs. Finally, a socially optimal investment can be opposite to the ISP's choice when the contents are enough …

choose a common standard if they can coordinate their quality provision. The actual investment then depends on the cost of … quality provision: If rather high, platforms refrain from investment; if rather low, platforms maintain vertically …, quality competition of standardised platforms induces the highest investment and maximum welfare. …

the network-specific technology result in a hold-up problem that implements the low-investment equilibrium. And even where … subsidies can avoid such hold-up, optimal monopoly pricing of network usage may avoid investment in the network …