The conditional value of information of SHM: what if the manager is not the owner?

Daniel Tonelli, Andrea Verzobio, Denise Bolognani, Carlo Cappello, Branko Glisic, Daniele Zonta, John Quigley

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

2 Citations (Scopus)

Abstract

Only very recently our community has acknowledged that the benefit of Structural Health Monitoring (SHM) can be properly quantified using the concept of Value of Information (VoI). The VoI is the difference between the utilities of operating the structure with and without the monitoring system, usually referred to as preposterior utility and prior utility. In calculating the VoI, a commonly understood assumption is that all the decisions to concerning system installation and operation are taken by the same rational agent. In the real world, the individual who decides on buying a monitoring system (the owner) is often not the same individual (the manager) who will actually use it. Even if both agents are rational and exposed to the same background information, they may behave differently because of their different risk aversion. We propose a formulation to evaluate the VoI from the owner's perspective, in the case where the manager differs from the owner with respect to their risk prioritisation. Moreover, we apply the results on a real-life case study concerning the Streicker Bridge, a pedestrian bridge on Princeton University campus, in USA. This framework aims to help the owner in quantifying the money saved by entrusting the evaluation of the state of the structure to the monitoring system, even if the manager's behaviour toward risk is different from the owner's own, and so are his or her management decisions. The results of the case study confirm the difference in the two ways to quantify the VoI of a monitoring system.

LanguageEnglish
Title of host publicationHealth Monitoring of Structural and Biological Systems XII
EditorsTribikram Kundu
Place of PublicationBellingham, WA USA
Volume10600
ISBN (Electronic)9781510616967
DOIs
Publication statusPublished - 8 Jun 2018
EventHealth Monitoring of Structural and Biological Systems XII 2018 - Denver, United States
Duration: 5 Mar 20188 Mar 2018

Conference

ConferenceHealth Monitoring of Structural and Biological Systems XII 2018
CountryUnited States
CityDenver
Period5/03/188/03/18

Fingerprint

Value of Information
structural health monitoring
Structural health monitoring
Health Monitoring
Monitoring System
Managers
Monitoring
Footbridges
Risk Aversion
Prioritization
Quantify
installing
Formulation
Evaluate
formulations
Evaluation
evaluation

Keywords

  • Bayesian Inference
  • bridge Management
  • decision-making
  • Expected Utility Theory
  • fiber optic sensors
  • value of information

Cite this

Tonelli, D., Verzobio, A., Bolognani, D., Cappello, C., Glisic, B., Zonta, D., & Quigley, J. (2018). The conditional value of information of SHM: what if the manager is not the owner? In T. Kundu (Ed.), Health Monitoring of Structural and Biological Systems XII (Vol. 10600). [106002D] Bellingham, WA USA. https://doi.org/10.1117/12.2296614
Tonelli, Daniel ; Verzobio, Andrea ; Bolognani, Denise ; Cappello, Carlo ; Glisic, Branko ; Zonta, Daniele ; Quigley, John. / The conditional value of information of SHM : what if the manager is not the owner?. Health Monitoring of Structural and Biological Systems XII. editor / Tribikram Kundu. Vol. 10600 Bellingham, WA USA, 2018.
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abstract = "Only very recently our community has acknowledged that the benefit of Structural Health Monitoring (SHM) can be properly quantified using the concept of Value of Information (VoI). The VoI is the difference between the utilities of operating the structure with and without the monitoring system, usually referred to as preposterior utility and prior utility. In calculating the VoI, a commonly understood assumption is that all the decisions to concerning system installation and operation are taken by the same rational agent. In the real world, the individual who decides on buying a monitoring system (the owner) is often not the same individual (the manager) who will actually use it. Even if both agents are rational and exposed to the same background information, they may behave differently because of their different risk aversion. We propose a formulation to evaluate the VoI from the owner's perspective, in the case where the manager differs from the owner with respect to their risk prioritisation. Moreover, we apply the results on a real-life case study concerning the Streicker Bridge, a pedestrian bridge on Princeton University campus, in USA. This framework aims to help the owner in quantifying the money saved by entrusting the evaluation of the state of the structure to the monitoring system, even if the manager's behaviour toward risk is different from the owner's own, and so are his or her management decisions. The results of the case study confirm the difference in the two ways to quantify the VoI of a monitoring system.",
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Tonelli, D, Verzobio, A, Bolognani, D, Cappello, C, Glisic, B, Zonta, D & Quigley, J 2018, The conditional value of information of SHM: what if the manager is not the owner? in T Kundu (ed.), Health Monitoring of Structural and Biological Systems XII. vol. 10600, 106002D, Bellingham, WA USA, Health Monitoring of Structural and Biological Systems XII 2018, Denver, United States, 5/03/18. https://doi.org/10.1117/12.2296614

The conditional value of information of SHM : what if the manager is not the owner? / Tonelli, Daniel; Verzobio, Andrea; Bolognani, Denise; Cappello, Carlo; Glisic, Branko; Zonta, Daniele; Quigley, John.

Health Monitoring of Structural and Biological Systems XII. ed. / Tribikram Kundu. Vol. 10600 Bellingham, WA USA, 2018. 106002D.

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

TY - GEN

T1 - The conditional value of information of SHM

T2 - what if the manager is not the owner?

AU - Tonelli, Daniel

AU - Verzobio, Andrea

AU - Bolognani, Denise

AU - Cappello, Carlo

AU - Glisic, Branko

AU - Zonta, Daniele

AU - Quigley, John

PY - 2018/6/8

Y1 - 2018/6/8

N2 - Only very recently our community has acknowledged that the benefit of Structural Health Monitoring (SHM) can be properly quantified using the concept of Value of Information (VoI). The VoI is the difference between the utilities of operating the structure with and without the monitoring system, usually referred to as preposterior utility and prior utility. In calculating the VoI, a commonly understood assumption is that all the decisions to concerning system installation and operation are taken by the same rational agent. In the real world, the individual who decides on buying a monitoring system (the owner) is often not the same individual (the manager) who will actually use it. Even if both agents are rational and exposed to the same background information, they may behave differently because of their different risk aversion. We propose a formulation to evaluate the VoI from the owner's perspective, in the case where the manager differs from the owner with respect to their risk prioritisation. Moreover, we apply the results on a real-life case study concerning the Streicker Bridge, a pedestrian bridge on Princeton University campus, in USA. This framework aims to help the owner in quantifying the money saved by entrusting the evaluation of the state of the structure to the monitoring system, even if the manager's behaviour toward risk is different from the owner's own, and so are his or her management decisions. The results of the case study confirm the difference in the two ways to quantify the VoI of a monitoring system.

AB - Only very recently our community has acknowledged that the benefit of Structural Health Monitoring (SHM) can be properly quantified using the concept of Value of Information (VoI). The VoI is the difference between the utilities of operating the structure with and without the monitoring system, usually referred to as preposterior utility and prior utility. In calculating the VoI, a commonly understood assumption is that all the decisions to concerning system installation and operation are taken by the same rational agent. In the real world, the individual who decides on buying a monitoring system (the owner) is often not the same individual (the manager) who will actually use it. Even if both agents are rational and exposed to the same background information, they may behave differently because of their different risk aversion. We propose a formulation to evaluate the VoI from the owner's perspective, in the case where the manager differs from the owner with respect to their risk prioritisation. Moreover, we apply the results on a real-life case study concerning the Streicker Bridge, a pedestrian bridge on Princeton University campus, in USA. This framework aims to help the owner in quantifying the money saved by entrusting the evaluation of the state of the structure to the monitoring system, even if the manager's behaviour toward risk is different from the owner's own, and so are his or her management decisions. The results of the case study confirm the difference in the two ways to quantify the VoI of a monitoring system.

KW - Bayesian Inference

KW - bridge Management

KW - decision-making

KW - Expected Utility Theory

KW - fiber optic sensors

KW - value of information

U2 - 10.1117/12.2296614

DO - 10.1117/12.2296614

M3 - Conference contribution book

VL - 10600

BT - Health Monitoring of Structural and Biological Systems XII

A2 - Kundu, Tribikram

CY - Bellingham, WA USA

ER -

Tonelli D, Verzobio A, Bolognani D, Cappello C, Glisic B, Zonta D et al. The conditional value of information of SHM: what if the manager is not the owner? In Kundu T, editor, Health Monitoring of Structural and Biological Systems XII. Vol. 10600. Bellingham, WA USA. 2018. 106002D https://doi.org/10.1117/12.2296614