Transport Demand and Economics

Module aims

To provide students with a rigorous mathematical understanding of the principal techniques used for modelling travel demand, transport supply, network performance and the appraisal of transport policies and projects.

Learning outcomes

On successfully completing this course unit, students will be able to: 

  • Understand the derivation and application of modern methods of analysing travel demand and network performance and their interaction. 
  • Understand the fundamental concepts of transport supply and the application of techniques for performance measurement. 
  • Understand the economic principles underlying the evaluation of transport policies and projects and some of the important practical challenges associated with their application. 
  • Have acquired experience in the use of relevant software tools implementing the methods presented in the module. 
  • Have gained an appreciation of how these methods have been used in practical transport planning contexts. 

Module syllabus

  • Fundamental concepts of discrete choice modelling. 
  • Principles of the formulation and estimation of discrete models including multinomial logit and nested logit. 
  • Principles of network equilibrium with fixed and elastic demand. 
  • Computation methods for network equilibrium. 
  • Transport supply including production, costs and performance measurement. 
  • Transport externalities. 
  • Investment and economic appraisal of transport policies and projects.   

Week No.  

Topic 

Staff 

01 

Fundamental concepts of discrete choice models of travel demand 

ASi,  

02 

Formulation and estimation of the multinomial logit (MNL) model 

ASi 

Lab session 1: Introduction to Biogeme 

TBC 

03 

Extension to the MNL model 

ASi 

Lab session 2: Introduction to the coursework 

TBC 

04 

Inverse demand, consumers surplus and transport appraisal 

DJG 

05 

Supply, externalities and efficient pricing 

DJG 

06 

Industrial organisation of transport markets 

DH 

07 

Economics of public transport 

DH 

08 

Equilibrium assignment and general network equilibrium 

KH 

09 

Equilibrium in transport networks 

KH 

10 

Teaching methods

Each lecture session will be a combination of 2 hours lecture + 1 hour tutorial.  There will be two 1-hour lab sessions in weeks 2 and 3, in order to introduce the Biogeme software (which will be used for the coursework) and the coursework. 

Reading list

Module leaders

Dr Aruna Sivakumar