Investigation of Effects of Time Preference and Risk Perception on Life-Cycle Management of Civil Infrastructure
Publication: ASCE-ASME Journal of Risk and Uncertainty in Engineering Systems, Part A: Civil Engineering
Volume 6, Issue 1
Abstract
Civil infrastructure systems have two essential characteristics: long service life and low probability of failure. Under these circumstances, life-cycle management (LCM) of civil infrastructure involves time preference of decision-makers on potential gains associated with maintenance actions and the perception of low probability (i.e., risk perception). In the decision-making process, decision-makers are likely to discount the desirability of decision alternatives involving future gains and low probabilities. This attitude is usually referred to as delay and probability discounting. This paper presents a novel approach for the LCM of civil infrastructure considering delay and probability discounting. The model and parameters used in this approach are obtained from a survey conducted among practicing civil engineers. The survey involved low probabilities and long time horizons commonly encountered in the field of civil engineering. The proposed approach is applied to the LCM of an existing highway bridge. It is found that probability discounting can reflect the risk aversion in the decision-making process, while the delay discounting may hinder timely maintenance actions, leading to higher life-cycle risk of civil infrastructure.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data, models, or code generated or used during the study are available from the corresponding author by request. The items include the questionnaire and the raw data collected in the survey.
Acknowledgments
The authors are grateful for the financial support received from: (1) the US Office of Naval Research (ONR) Award Nos. N00014-08-1-0188, N00014-12-0023, and N00014-16-1-2299; (2) the US National Science Foundation Grant No. CMMI-1537926; (3) the US Department of Transportation Region 3 University Transportation Center Award No. CIAM-UTC-REG6; and (4) the Pennsylvania Infrastructure Technology Alliance (PITA). The opinions and conclusions presented in this paper are those of the authors and do not necessarily reflect the views of the sponsoring organizations.
References
Akaike, H. 1973. “Information theory and an extension of the maximum likelihood principle.” In Proc., 2nd Int. Symp. on Information Theory, 267–281. Budapest: Akademiai Kiado.
Akgül, F. 2002. “Lifetime system reliability prediction for multiple structure types in a bridge network.” Ph.D. thesis, Dept. of Civil, Environmental and Architectural Engineering, Univ. of Colorado.
Akgül, F., and D. M. Frangopol. 2004a. “Computational platform for predicting lifetime system reliability profiles for different structure types in a network.” J. Comput. Civ. Eng. 18 (2): 92–104. https://doi.org/10.1061/(ASCE)0887-3801(2004)18:2(92).
Akgül, F., and D. M. Frangopol. 2004b. “Lifetime performance analysis of existing steel girder bridge superstructures.” J. Struct. Eng. 130 (12): 1875–1888. https://doi.org/10.1061/(ASCE)0733-9445(2004)130:12(1875).
Andersen, S., G. W. Harrison, M. I. Lau, and E. E. Rutström. 2008. “Eliciting risk and time preferences.” Econometrica 76 (3): 583–618. https://doi.org/10.1111/j.1468-0262.2008.00848.x.
Benzion, U., A. Rapoport, and J. Yagil. 1989. “Discount rates inferred from decisions: An experimental study.” Manage. Sci. 35 (3): 270–284. https://doi.org/10.1287/mnsc.35.3.270.
Biondini, F., and D. M. Frangopol. 2016. "Life-cycle performance of deteriorating structural systems under uncertainty: Review." J. Struct. Eng. 142 (9): F4016001. https://doi.org/10.1061/(ASCE)ST.1943-541X.0001544.
Blavatskyy, P. R. 2016. “A monotone model of intertemporal choice.” Econ. Theory 62 (4): 785–812. https://doi.org/10.1007/s00199-015-0931-6.
Caines, S., F. Khan, and J. Shirokoff. 2013. “Analysis of pitting corrosion on steel under insulation in marine environments.” J. Loss Prev. Process Ind. 26 (6): 1466–1483. https://doi.org/10.1016/j.jlp.2013.09.010.
Cha, E. J., and B. R. Ellingwood. 2012. “Risk-averse decision-making for civil infrastructure exposed to low-probability, high-consequence events.” Reliab. Eng. Syst. Saf. 104 (Aug): 27–35. https://doi.org/10.1016/j.ress.2012.04.002.
Cha, E. J., and B. R. Ellingwood. 2014. “Attitudes towards acceptance of risk to buildings from extreme winds.” Struct. Infrastruct. Eng. 10 (6): 697–707. https://doi.org/10.1080/15732479.2012.758642.
Czarnecki, A. A., and A. S. Nowak. 2007. “Reliability-based evaluation of steel girder bridges.” Proc. Inst. Civ. Eng. Bridge Eng. 160 (1): 9–15. https://doi.org/10.1680/bren.2007.160.1.9.
Czarnecki, A. A., and A. S. Nowak. 2008. “Time-variant reliability profiles for steel girder bridges.” Struct. Saf. 30 (1): 49–64. https://doi.org/10.1016/j.strusafe.2006.05.002.
Deng, L., W. Yan, and S. Li. 2019. “Computer modeling and weight limit analysis for bridge structure fatigue using openSEES.” J. Bridge Eng. 24 (8): 04019081. https://doi.org/10.1061/(ASCE)BE.1943-5592.0001459.
Dong, Y., and D. M. Frangopol. 2017. “Probabilistic life-cycle cost-benefit analysis of portfolios of buildings under flood hazard.” Eng. Struct. 142 (Jul): 290–299. https://doi.org/10.1016/j.engstruct.2017.03.063.
Ellingwood, B. R., and Y.-K. Wen. 2005. “Risk-benefit-based design decisions for low-probability/high consequence earthquake events in Mid-America.” Prog. Struct. Mater. Eng. 7 (2): 56–70. https://doi.org/10.1002/pse.191.
Estes, A. C. 1997. “A system reliability approach to the lifetime optimization of inspection and repair of highway bridges.” Ph.D. thesis, Dept. of Civil, Environmental and Architectural Engineering, Univ. of Colorado.
Estes, A. C., and D. M. Frangopol. 1999. “Repair optimization of highway bridges using system reliability approach.” J. Struct. Eng. 125 (7): 766–775. https://doi.org/10.1061/(ASCE)0733-9445(1999)125:7(766).
Estes, A. C., and D. M. Frangopol. 2001. “Bridge lifetime system reliability under multiple limit states.” J. Bridge Eng. 6 (6): 523–528. https://doi.org/10.1061/(ASCE)1084-0702(2001)6:6(523).
Frangopol, D. M., and P. C. Das. 1999. "Management of bridge stocks based on future reliability and maintenance costs." In Current and future trends in bridge design, construction, and maintenance, edited by P. C. Das, D. M. Frangopol, and A. S. Nowak, 45–58. London: Thomas Telford.
Frangopol, D. M., Y. Dong, and S. Sabatino. 2017. “Bridge life-cycle performance and cost: Analysis, prediction, optimisation and decision-making.” Struct. Infrastruct. Eng. 13 (10): 1239–1257. https://doi.org/10.1080/15732479.2016.1267772.
Frangopol, D. M., and S. Kim. 2019. Life-cycle of structures under uncertainty: Emphasis on fatigue-sensitive civil and marine structures. Boca Raton, FL: CRC Press.
Frankel, G. S. 1998. “Pitting corrosion of metals a review of the critical factors.” J. Electrochem. Soc. 145 (6): 2186–2198. https://doi.org/10.1149/1.1838615.
Frederick, S., G. Loewenstein, and T. O’Donoghue. 2002. “Time discounting and time preference: A critical review.” J. Econ. Lit. 40 (2): 351–401. https://doi.org/10.1257/jel.40.2.351.
Han, X., D. Y. Yang, and D. M. Frangopol. 2019. “Time-variant reliability analysis of steel plates in marine environments considering pit nucleation and propagation.” Probab. Eng. Mech. 57: 32–42. https://doi.org/10.1016/j.probengmech.2019.05.003.
Hausman, J. A. 1979. “Individual discount rates and the purchase and utilization of energy-using durables.” Bell J. Econ. 10 (1): 33–54. https://doi.org/10.2307/3003318.
Ho, M.-Y., S. Mobini, T.-J. Chiang, C. M. Bradshaw, and E. Szabadi. 1999. “Theory and method in the quantitative analysis of “impulsive choice” behaviour: Implications for psychopharmacology.” Psychopharmacol. 146 (4): 362–372. https://doi.org/10.1007/PL00005482.
Hurvich, C. M., and C.-L. Tsai. 1989. “Regression and time series model selection in small samples.” Biometrika 76 (2): 297–307. https://doi.org/10.1093/biomet/76.2.297.
Johannesson, M., and P.-O. Johansson. 1997. “Quality of life and the WTP for an increased life expectancy at an advanced age.” J. Public Econ. 65 (2): 219–228. https://doi.org/10.1016/S0047-2727(97)00014-5.
Knight, F. H. 1921. Risk, uncertainty and profit. Boston: Houghton Mifflin.
Koopmans, T. C. 1960. “Stationary ordinal utility and impatience.” Econometrica 28 (2): 287–309. https://doi.org/10.2307/1907722.
Liu, L., D. M. Frangopol, A. Mondoro, and D. Y. Yang. 2018. “Sustainability-informed bridge ranking under scour based on transportation network performance and multiattribute utility.” J. Bridge Eng. 23 (10): 04018082. https://doi.org/10.1061/(ASCE)BE.1943-5592.0001296.
Liu, M., and D. M. Frangopol. 2004. “Optimal bridge maintenance planning based on probabilistic performance prediction.” Eng. Struct. 26 (7): 991–1002. https://doi.org/10.1016/j.engstruct.2004.03.003.
Liu, Y., and D. M. Frangopol. 2018. “Probabilistic risk, sustainability, and utility associated with ship grounding hazard.” Ocean Eng. 154 (Apr): 311–321. https://doi.org/10.1016/j.oceaneng.2018.01.101.
Mazur, J. E. 1987. “An adjusting procedure for studying delayed reinforcement.” In Vol. 5 of Quantitative analyses of behavior: The effect of delay and intervening events on reinforcement value, edited by M. L. Commons, J. L. Mazur, J. A. Nevin, and H. Rachlin, 55–73. Hillsdale, NJ: Erlbaum.
Mondoro, A., D. M. Frangopol, and L. Liu. 2018. “Multi-criteria robust optimization framework for bridge adaptation under climate change.” Struct. Saf. 74 (Sep): 14–23. https://doi.org/10.1016/j.strusafe.2018.03.002.
Nowak, A. S. 1999. Calibration of LRFD bridge design code. Washington, DC: Transportation Research Board.
Padgett, J. E., K. Dennemann, and J. Ghosh. 2010. “Risk-based seismic life-cycle cost–benefit (LCC-B) analysis for bridge retrofit assessment.” Struct. Saf. 32 (3): 165–173. https://doi.org/10.1016/j.strusafe.2009.10.003.
Rachlin, H., A. Raineri, and D. Cross. 1991. “Subjective probability and delay.” J. Exp. Anal. Behav. 55 (2): 233–244. https://doi.org/10.1901/jeab.1991.55-233.
Sabatino, S., D. M. Frangopol, and Y. Dong. 2015. “Sustainability-informed maintenance optimization of highway bridges considering multi-attribute utility and risk attitude.” Eng. Struct. 102 (Nov): 310–321. https://doi.org/10.1016/j.engstruct.2015.07.030.
Sabatino, S., D. M. Frangopol, and Y. Dong. 2016. “Life cycle utility-informed maintenance planning based on lifetime functions: Optimum balancing of cost, failure consequences and performance benefit.” Struct. Infrastruct. Eng. 12 (7): 830–847. https://doi.org/10.1080/15732479.2015.1064968.
Samuelson, P. A. 1937. “A note on measurement of utility.” Rev. Econ. Stud. 4 (2): 155–161. https://doi.org/10.2307/2967612.
Tversky, A., and D. Kahneman. 1974. “Judgment under uncertainty: Heuristics and biases.” Sci. 185 (4157): 1124–1131. https://doi.org/10.1126/science.185.4157.1124.
Unnikrishnan, V. U., and M. Barbato. 2016. “Performance-based comparison of different storm mitigation techniques for residential buildings.” J. Struct. Eng. 142 (6): 04016011. https://doi.org/10.1061/(ASCE)ST.1943-541X.0001469.
Vanderveldt, A., L. Green, and J. Myerson. 2015. “Discounting of monetary rewards that are both delayed and probabilistic: Delay and probability combine multiplicatively, not additively.” J. Exp. Psychol. Learn. Mem. Cogn. 41 (1): 148–162. https://doi.org/10.1037/xlm0000029.
Yang, D. Y., and D. M. Frangopol. 2018. “Risk-informed bridge ranking at project and network levels.” J. Infrastruct. Syst. 24 (3): 04018018. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000430.
Yang, D. Y., D. M. Frangopol, and J.-G. Teng. 2019. “Probabilistic life-cycle optimization of durability-enhancing maintenance actions: Application to FRP strengthening planning.” Eng. Struct. 188 (Jun): 340–349. https://doi.org/10.1016/j.engstruct.2019.02.055.
Yi, R., X. de la Piedad, and W. K. Bickel. 2006. “The combined effects of delay and probability in discounting.” Behav. Processes 73 (2): 149–155. https://doi.org/10.1016/j.beproc.2006.05.001.
Information & Authors
Information
Published In
Copyright
©2020 American Society of Civil Engineers.
History
Received: Feb 12, 2019
Accepted: Jul 3, 2019
Published online: Jan 6, 2020
Published in print: Mar 1, 2020
Discussion open until: Jun 6, 2020
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.