: An end-to-end adaptive rate-based control scheme is currently being considered by the ATM Forum for supporting Available Bit Rate (ABR) services. The scheme is a reactive control where the source adapts its transmission rate based on feedback from the network. The adaptation can be linear or exponential, while the information received from the network can be based on a forward or backward explicit congestion indication. In this paper, we investigate the network performance and bandwidth allocation fairness of various adaptation alternatives in handling traffic traversing different numbers of hops. The results show that a new EFCI mechanism with exponential-linear increment and exponential decrement offers the best performance and that the choice of adaptation parameters plays an important role in ensuring good performance and fairness for ABR sources. 1 INTRODUCTION B-ISDN is expected to support a wide variety of services (including voice, video and data) with diverse charateristics..