This short essay examines the current conditions in the US telecommunications sector. We examine the impact of technological and regulatory change on market structure and business strategy. Among others, we examine the impact on pricing of digitization and the emergence of internet telephony. We...

We analyze the equilibrium size of networks under alternative market structures. Networks are characterized by positive size externalities (commonly called "network externalities"). That is, the benefits of the addition of an extra node (or an extra customer) exceed the private benefits accruing...

This paper develops some important concepts with respect to networks and compatibility. We note that the familiar concept of complementarity lies at the heart of the concept of compatibility. We further note the distinction between two-way networks (e.g., telephones, railroads, the Internet) and...