pharmaceutical industry, 17 long-run vs. short-run costs, 71-75 transfer control protocol and Internet protocol market prices, 71 (TCP/IP), 34, 158, 169-170 modified cost function, 73-74 packet anonymity, 384 natural monopoly property, 70 packet transmission, 383 short-run cost function, 72 transmission stage, of production, 167, 167f short-run incremental cost, 75 transportation network standalone costs, 69 components of, 14 TELRIC system, 71 contribution to GDP, 14, 14t transaction costs, 182-184 as interconnected, 33 unbundled network element (UNE), 134-135 railroad industry, 14-15 DSL and, 341-342 retail access to, 32 local loop as, 29 trucking industry, 15 unconstrained revenue-maximizing price, 81, 81f transportation systems, traffic identification in, 50 UNE. See unbundled network element tree-and-branch configuration, 335 UNE-Platform (UNE-P), 239 tree graph, 43-44 usage-sensitive pricing, 412-418 lack of cycles in, 43 U.S. Department of Justice minimum spanning tree, 43, 43f, 44, 44f natural monopoly rationale for cable mergers, 348 spanning tree, 43, 43f, 44 on network neutrality, 347 tree network, 25-26, 26f non-horizontal merger guidelines (1984), 292-293, Triennial Review Order, 343, 369 Trinko, 308-315 user costs of capital, as second-best solution, 196 Index utilization factor, 55n10 Whinston, Michael, 290-291, 291n25 UUNet (Verizon), 15, 175 wholesale access, 7, 30, 33, 163-168, 174-180 under antitrust law, 319-322 Vail, Theodore, 120, 175, 248-250 capacity and configuration effects, 163-168 Verizon, 15, 175 economic effects of regulating access to network, FiOS network, 335, 350 154-155 time issues with operations support system, excess demand, 163, 165f wholesale access and, 257, 310 increase demand, 164-165 vertical competition, 326 incremental demand, 165-166 vertical exclusion local telephone network, 257-260, 276 of AT&T, 123-125, 174-175 outsourcing retail and, 176-178 digital transmission and, 247 prices demand depends on under, 257-258 double marginalization and, 146 reduce demand, 165 ec