I'd expect exactly what you describe. TCP cannot cope with loss above
1 frame per pipe length without seriois performance loss. Typically thats
5-10% loss. Above that it will back off a lot.
Your model is then flawed because the back off doesnt induce lower error
rates through reduced congestion. You model a continuous 25% loss link
layer - and that is something that unaided is beyond the capabilities
of an IP network.
Alan
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