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We use simulation to study the dynamics of the congestion cent rol algorithm embedded in the BSD 4.3-Tahoe TCP implementation. We investigate the simple case of a few TCP connections, originating and terminating at the same pair of hosts, using a single bottleneck link. This work is an extension of our earlier work ([16]), where one-way traffic (ie, all of the sources are on the same host and all of the destinations are on the other host) was studied. In this paper we investigate the dynamics that results from two-way traffic (in which there are data sources on both hosts). We find that the one-way traffic clustering and loss-synchronization phenomena d~ cussed in [16] persist in this new situation, albeit in a slightly modified form. In addition, there are two new phenomena not present in the earlier study:(1) ACK-compression, which is due to the interaction of data and ACK packets and gives rise to rapid fluctuations in …