Recent measurements of network traffic have shown that self-similarity is an ubiquitous phenomenon present in both local area and wide area traffic traces. In previous work, we have shown a simple, robust application layer causal mechanism of traffic self-similarity, namely, the transfer of files in a network system where the file size distributions are heavy-tailed. In this paper, we study the effect of scale-invariant burstiness on network performance when the functionality of the transport layer and the nteraction of traffic sources sharing bounded network resources is incorporated. First, we show that transport layer mechanisms are important factors in translating the application layer causality into link traffic self-similarity. Network performance as captured by throughput, packet loss rate, and packet retransmission rate degrades gradually with increased heavy-tailedness while queueing delay, response time, and fairness deteriorate more drastically. The degree to which heavy-tailedness affects self-similarity is determined by how well congestion control is able to shape a source traffic into an on-average constant output stream while conserving information. Second, we show that increasing network resources such as link bandwidth and buffer capacity results in a superlinear improvement in performance. When large file transfers occur with nonnegligible probability, the incrementa
