TR-GY 6053 Transportation Economics and Finance Fundamentals

3 Credits

In this course, we will discuss the fundamentals of economic theory and their application to the modeling and analysis of transportation systems. We will approach transportation systems as markets and study the resulting supply-demand equilibrium in these markets. Starting from concepts of utility maximization, we will explore how individuals optimally choose between alternatives and how these choices give rise to the demand functions for different services. Then, we will investigate the supply side and study provision of the aforementioned services. Lastly, we will study strategic interactions between different actors in the transportation market and how these interactions affect market outcomes. This will allow us to confidently approach and apply equilibrium analysis to transportation systems to derive insights as to their performance, their design and their regulation. Examples will be primarily drawn from, among other things: ride-hailing markets, network planning and design, parking provision and location for connected and autonomous vehicles, land use and automation, congestion pricing.

Prerequisite(s): Knowledge of a programming language (e.g.: C++, Julia, Python…), of a scripting language (e.g.: MATLAB…) or of an algebraic modeling language (e.g.: GAMS…) is strongly recommended due to the nature of some of the assignments.
Weekly Lecture Hours: 3