ons, 66-68 income capitalization approach, 196 MVNOs. See mobile virtual network operators last-mile broadband, 369-372 Myerson, Roger B., 16-17 market prices/regulated prices/efficiency, 192-194 second-best solution in absence of external markets, NAPs. See network access points 196-198 National Exchange Carrier Association, 267n35 economic cost, 196 natural gas market, priority pricing in, 93-94 historical cost, 197 natural gas pipeline network, 15 opportunity cost, 196-197 economies of scale in, 66 recent purchase cost, 197 energy industries, 15 replacement cost, 197 inputs of service in, 29 transactions costs, 197-198 single-output network transmission, 53-55 user costs of capital, 196 natural monopoly, 70, 119-120, 135-138 unit costs differences and, 194-195 broadband services as, 350 market-clearing price, with scarce capacity, 79f cable merger as, 348 market microstructure, 17 characteristics of, 202-203 market value, defining, 224 definition of, 203 market value, determining under Takings Clause, intramodal, 348 224-227 rationales for regulating, 241-244, 348-351 comparable sales approach, 224, 226 regulation as source of, 403 facilities-based competition effect on, 227 telephone network as, 120 historical cost approach, 225-226 neoclassical economics, supply-and-demand in, 190n1 income capitalization approach, 224-225 net benefit of capacity formula, 82n1 opportunity cost approach, 224 network, definition of, 19 replacement cost approach, 225 network access points (NAPs), 409n2 Markey, Edward, 346 network building, steps in, 40-41 Martin, Kevin, 345n21, 346 network capacity, pricing, 5. See also capacity pricing mathematical theory of networks, 19 network capacity principle, 160 max-flow/min-cut theorom, 47, 48f, 48n6, 49f, 50, network costs consistency, 200-205 363,368 economies of scale and scope and, 201-203 MCI (Microwave Communications, Inc.), 129-130, sunk costs and, 203-205 235-236, 326-327 network diversity, economic case for, 376-393 Index dynamic efficiency, 390-393 transaction costs of, 178-18