e and Usage-Sensitive Pricing Coasian Proxies as an Alternative Solution to Congestion Implications of Congestion Economics for Network Neutrality Prohibitions on Reselling Bandwidth or Acting as an Internet Service Provider 2. Restrictions on Home Networking 3. Restrictions on Attaching Devices Restrictions on Operating File Servers 5. Discrimination against Particular Applications 6. Discrimination against Particular Content The Potential Insufficiency of Capacity Expansion and Metered Pricing as Alternatives D. A Broader Perspective on Consumer Welfare Conclusion Bibliography Index Table of Cases Preface Networks in communications, transportation, and distribution are fundamental features of the modern economy. Network industries are a major source of eco- nomic growth and a key component of economic development. The expansion of telecommunications, the Internet, and mobile communications has accompanied innovations in information technology. Although electronic commerce was once viewed as a specific category of business transactions, practically all business activity has come to depend on digital communications networks. Public policymakers are keenly aware of the critical role of telecommunications in the economy. A great shift in regulatory focus has occurred, from more tradi- tional utility regulation to access mandates. Examining changes in public policy in telecommunications requires a more fundamental understanding of the structure and function of networks. Expansion of the economics and law literatures on net- works has accompanied economic and technological developments. The purpose of this book is to evaluate the implications of this public policy shift and to achieve a better understanding of public policy toward networks. To achieve these objectives, the book develops a comprehensive framework for the study of telecommunications networks. We draw upon important developments in the graph theory that is used to represent networks. We examine economic models of networks and apply these developments to