Let F and G be two collections of a total of n (possibly partially def
ined) bivariate, algebraic functions of constant maximum degree. The m
inimization diagrams of F, G are the planar maps obtained by the xy-pr
ojections of the lower envelopes of F, G, respectively. We show that t
he combinatorial complexity of the overlay of the minimization diagram
s of F and of G is O (n(2+epsilon)), for any epsilon > 0. This result
has several applications: (i) a near-quadratic upper bound on the comp
lexity of the region in S-space enclosed between the lower envelope of
one such collection of functions and the upper envelope of another co
llection; (ii) an efficient and simple divide-and-conquer algorithm fo
r constructing lower envelopes in three dimensions; and (iii) a near-q
uadratic upper bound on the complexity of the space of all plane trans
versals of a collection of simply shaped convex sets in three dimensio
ns.