When heterogeneous congestion control protocols that react to different pricing signals (e.g. packet loss, queueing delay, ECN marking etc.) share the same network, the current theory based on utility maximization fails to predict the network behavior. Unlike in a homogeneous network, the bandwidth allocation now depends on router parameters and flow arrival patterns. It can be non-unique, inefficient and unfair. This paper has two objectives. First, we demonstrate the intricate behaviors of a heterogeneous network through simulations and present a rigorous framework to help understand its equilibrium efficiency and fairness properties. By identifying an optimization problem associated with every equilibrium, we show that every equilibrium is Pareto efficient and provide an upper bound on efficiency loss due to pricing heterogeneity. On fairness, we show that intra-protocol fairness is still decided by a utility maximization problem while inter-protocol fairness is the part over which we don?t have control. However it is shown that we can achieve any desirable inter-protocol fairness by properly choosing protocol parameters. Second, we propose a simple slow timescale source-based algorithm to decouple bandwidth allocation from router parameters and flow arrival patterns and prove its feasibility. The scheme needs only local information.