Assessment of Seismic Indirect Losses Based on Utility Curves

Abstract

In the process of quantifying optimum seismic design parameters, the losses implying the failure of the system must be assessed. Intangibles such as human lives may lie among indirect losses. In this paper, we propose a model to calculate the value of the investment that society should be willing to make for saving lives. In order to do this, we analyze both individual and social problems. However, special treatment is given to the individual problem where the value of the life of a human being is inferred by what the person should be willing to pay or willing to accept to reduce the risk of dying. Due to the use of utility curves in the calculation of this kind of intangible, we pay special attention to shape and requirement conditions of these curves. We also pay attention when personal impact and legacies or bequests are considered in utility curves. The results are shown through some applications, especially in the computation of optimum seismic design coefficients at a low seismicity site.