Shipowner preferences and user charges: allocating port infrastructure costs

The main aim of this paper is to present a pricing mechanism appropriate fo r allocating common maritime infrastructure cost which would allow not only a fair and efficient allocation, but also, a solution which would take int o account demand characteristics assuring a realistic interpretation of mar ket's behaviour. The proposed solution concept is that of the "ratio equili brium". Its main qualities consist in guaranteeing a balanced budget, and b eing - from a strategic point of view - a stable solution. In other words, no port user will be discouraged from using the infrastructure by the assig nment of a cost-share that is too high. This latter feature adds a competit ive element into the calculations and can be considered as an innovative fe ature of this analysis. A numeric example is presented. (C) 2000 Elsevier S cience Ltd. All rights reserved.