Human activity in general, and economic activity in particular, is not uniformly spread over space. What is the reason for the existence of concentrated centers of population and economic activity (cities)? In what way does the population of the cities develop? How is the economic activity interpreted in the space? Why are people and companies willing to pay a lot to be close to each other in cities? What are the economic benefits of urbanization? During the course we will discuss these and other questions through the presentation of simple economic models that deal with various aspects of urban and regional development.