This paper shows a scheme of urban transport management aimed at solving the externalities due to road traffic. In this scheme both private and public transport modes are managed by a planning authority having control of some decision variables: road pricing, transit ticket prices, and the service characteristics of transit. The multimodal transport system is subject to some constraints: physical and environmental capacity constraints, and budget constraints. In some cases an upper bound is imposed on the ticket price,in order to help people who are captive of transit. The planning authority ®xes the level of all user charges and the transit service characteristics, in such a way that the average transport generalized cost is mini- mized, and at the same time the transport system is in equilibrium and all constraints are satisted.
