E. A Coasian Theory of Networks Contents The Design and Costs of Networks A. The Optimal Design of Networks 1. Choosing the Network Configuration 2. Cost-Minimizing Network Design Cost-Minimizing Design of a Cycle Network Network Configurations with Economies of Scale in Links The Max-Flow/Min-Cut of a Network Production Functions of Networks 1. Production Functions and Engineering 2. Production Functions for a Single-Output Network 3. Production Functions for a Multioutput Network Cost Functions of Networks 1. Derivation of the Cost Function 2. Economies of Scale 3. Multiproduct Cost Functions D. The Cost of Unbundled Access to Networks 1. Allocating Multiproduct Costs 2. Long-Run versus Short-Run Costs 3. Pricing Network Services Network Capacity and Pricing 1. The Basics of Pricing with Scarce Capacity 2. Pricing Capacity under Uncertainty Time-of-Use Pricing of Capacity Network Capacity Pricing under Asymmetric Information 1. Vickrey Auctions of Capacity 2. Reliability Pricing of Capacity 3. Priority Pricing of Capacity C. Network Capacity Pricing with Congestion and Quality of Service 1. Blocked Calls 2. Information Loss Demand for Capacity: Substitutes and Complements 1. Substitutes and Network Capacity 2. Complements and Network Capacity PART II. THE REGULATION OF NETWORKS 4. Network Regulation Basics Economic Justifications for Regulating Networks 1. Natural Monopoly 2. Network Economic Effects Contents Vertical Exclusion 4. Ruinous/Managed Competition Basic Regulatory Instruments 1. Tariffing 2. Structural Separation 3. Unbundling Analyzing the Rationales and Regulatory Instruments 1. Natural Monopoly Network Economic Effects 3. Vertical Exclusion Economic Effects of Regulating Access to Networks Classifying Types of Access to Networks Retail Access Wholesale Access Interconnection Access Platform Access Unbundled Access Capacity and Configuration Effects of Access Regulation Retail Access Wholesale Access Interconnection Access Platform Access Unbundled Access Transaction Cost Effects of Access Regulati