Bi-level programming model for the paid use of waterfront resources

As a kind of scarce and valuable natural resources, waterfront resources must be utilized scientifically. However, due to irrational distribution and rapid exploitation, there is increasing scarcity of waterfront resources in countries. In order to realize the value of them, paid use should be implemented. This paper started with a general description of several kinds of natural resources pricing models. Considering the game behavior between government and companies, a bi-level programming model was set up. The upper-level problem represented government whose target was to maximize the efficiency whereas companies as the users of waterfront resources were the lower-level decision-makers seeking the lowest cost. And then sensitivity analysis method was proposed as a solution approach of the model. Bi-level programming model combined with paid use provides a new research thought to sustainable exploitation and utilization of waterfront resources.