A Characterization Theorem for a Modal Description Logic

Modal description logics feature modalities that capture dependence of knowledge on parameters such as time, place, or the information state of agents. E.g., the logic S5-ALC combines the standard description logic ALC with an S5-modality that can be understood as an epistemic operator or as representing (undirected) change. This logic embeds into a corresponding modal first-order logic S5-FOL. We prove a modal characterization theorem for this embedding, in analogy to results by van Benthem and Rosen relating ALC to standard first-order logic: We show that S5-ALC with only local roles is, both over finite and over unrestricted models, precisely the bisimulation invariant fragment of S5-FOL, thus giving an exact description of the expressive power of S5-ALC with only local roles.