The chapter "The Economics of Urban Transportation" by Kenneth A. Small and Erik T. Verhoef provides a comprehensive overview of the economic principles and models used to understand and manage urban transportation systems. It begins with an introduction to travel demand, covering both aggregate and disaggregate models, and their applications in metropolitan areas. The chapter then delves into advanced discrete-choice modeling, including generalized extreme value models and random parameters, and discusses the value of time and reliability. The section on costs explores cost functions for public transit and highway travel, including congestion technology and intermodal cost comparisons. The pricing chapter examines first-best and second-best congestion pricing strategies, practical examples from Singapore, Norway, the US, and London, as well as the pricing of parking and public transit. The investment chapter discusses capacity choice, cost-benefit analysis, and the use of cost-benefit analysis in transportation planning. Finally, the industrial organization of transportation providers is analyzed, covering private highways, regulation, franchising, and privately provided transit services. The chapter concludes with emerging themes and implications for future transportation research.The chapter "The Economics of Urban Transportation" by Kenneth A. Small and Erik T. Verhoef provides a comprehensive overview of the economic principles and models used to understand and manage urban transportation systems. It begins with an introduction to travel demand, covering both aggregate and disaggregate models, and their applications in metropolitan areas. The chapter then delves into advanced discrete-choice modeling, including generalized extreme value models and random parameters, and discusses the value of time and reliability. The section on costs explores cost functions for public transit and highway travel, including congestion technology and intermodal cost comparisons. The pricing chapter examines first-best and second-best congestion pricing strategies, practical examples from Singapore, Norway, the US, and London, as well as the pricing of parking and public transit. The investment chapter discusses capacity choice, cost-benefit analysis, and the use of cost-benefit analysis in transportation planning. Finally, the industrial organization of transportation providers is analyzed, covering private highways, regulation, franchising, and privately provided transit services. The chapter concludes with emerging themes and implications for future transportation research.