ssociated with the mathematics of graph theory, which provides insights into the complex, systemic interrelationships among network components. It also applies the principles of transaction cost economics to analyze decisions about the appropriate boundaries of proprietary network architecture. The book introduces network theory into the study of the economics and law of telecommunications. The discussion opens up the black box of the cost function in telecommunications. The analysis also goes beyond the "network externalities" approach, which focuses primarily on the size of networks. The book highlights the effects of network architecture and the tradeoffs inherent in network design. Daniel F. Spulber is the Elinor Hobbs Distinguished Professor of International Business and Professor of Management Strategy at the Kellogg School of Management, where he has taught since 1990. He is also Professor of Law at the Northwestern University School of Law (Courtesy) and founder of Kellogg's International Business and Markets Program. Founding editor of the Journal of Economics and Management Strategy, Professor Spulber has received eight National Science Foundation grants, three Searle Fund grants, and two Ewing Marion Kauffman Foundation grants for economic research. His current research is in the area of international economics, industrial organization, management strategy, and law. He is the author of 11 other books, including The Theory of the Firm: Microeconomics with Endogenous Entrepreneurs, Firms, Markets, and Organizations (2009), Global Competitive Strategy (2007), Market Microstructure: Intermediaries and the Theory of the Firm (1999), and Deregulatory Takings and the Regulatory Contract: The Competitive Transformation of Network Industries in the United States (with J. Gregory Sidak, 1997), all from Cambridge University Press, and Management Strategy (2004), The Market Makers (1998), and Regulation and Markets (1989). Christopher S. Yoo is Professor of Law and Founding Director of the Center for Technology, I