Journal of Economic PerspectivesVolume 25, Number 1Winter 2011Pages 209222

D
uring the night of April 14, 1912, the RMS Titanic collided with an iceberg
on her maiden voyage. Two hours and 40 minutes later she sank, resulting
in the loss of 1,501 livesmore than two-thirds of her 2,207 passengers
and crew. This remains one of the deadliest peacetime maritime disasters in history
and by far the most famous. The disaster came as a great shock because the vessel
was equipped with the most advanced technology at that time, had an experienced
crew, and was thought to be practically unsinkable (although the belief that the
ship had been widely believed to be truly unsinkable actually arose after the sinking,
as explained in Howell, 1999). The Titanics fame was enhanced by the considerable
number of flms made about it: not including various made-for-television movies
and series, the list would include Saved from the Titanic (1912), In Nacht und Eis
(1912), Atlantic (1929), Titanic (1943 and 1953), A Night to Remember (1958), Raise
the Titanic! (1980), and of course the 1997 Titanic, directed by James Cameron and
starring Leonardo DiCaprio and Kate Winslet. In 1985, a joint AmericanFrench
expedition, led by Jean-Louis Michel and Dr. Robert Ballard, located the wreckage
and collected approximately 6,000 artifacts, which were later shown in an exhibition
that toured the world.
Behavior under Extreme Conditions:
The Titanic Disaster
Bruno S. Frey is Professor of Economics, Institute for Empirical Research in Economics,
University of Zurich, Switzerland, and Distinguished Professor of Behavioural Science, Warwick
Business School, University of Warwick, U.K. David A. Savage is a Graduate Student, School
of Economics and Finance, Queensland University of Technology, Brisbane, Australia. Benno
Torgler is Professor of Economics, School of Economics and Finance, Queensland University of
Technology, Brisbane, Australia. Frey and Torgler are also associated with CREMACenter for
Research in Economics, Management and the Arts, Basel, Switzerland.
doi=10.1257/jep.25.1.209
Bruno S. Frey, David A. Savage, and Benno Torgler
Tis article is substantially similar to:
1) Frey, Bruno S., David A. Savage, and Benno Torgler. 2010. Interaction of Natural Survival Instincts and Internalized Social Norms
Exploring the Titanic and Lusitania Disasters. Proceedings of the National Academy of Sciences, 107(11): 486265.
2) Frey, Bruno S., David A. Savage, and Benno Torgler. 2010. Noblesse oblige? Determinants of Survival in a Life-and-Death Situation.
Journal of Economic Behavior and Organizations, 74(12): pp. 111.
3) Frey, Bruno S., David A. Savage, and Benno Torgler. 2011. Who Perished on the Titanic? Te Importance of Social Norms. Rational-
ity and Society, 23(1): 3549.
JEP regrets that these articles were not cited in the original publication.
210 Journal of Economic Perspectives
For social scientists, evidence about how people behaved as the Titanic
sunk offers a quasi-natural feld experiment to explore behavior under extreme
conditions of life and death. A common assumption is that in such situations,
self-interested reactions will predominate and social cohesion is expected to
disappear. For example, in an article called The Human Being in Disasters: A
Research Perspective, Fritz and Williams (1957, p. 42) write: (Human beings)
. . . panic, trampling each other and losing all concern for their fellow human
beings. After panic has subsidedso the image indicatesthey turn to looting
and exploitation, while the community is rent with confict . . . Other researchers
like Gray (1988) and Mawson (2007) present a similar image, while movies, televi-
sion and radio programs, novels, and journalistic reports of disasters often tend to
reinforce this grim scenario. However, empirical evidence on the extent to which
people in the throes of a disaster react with self-regarding or with other-regarding
behavior is scanty.
The sinking of the Titanic posed a life-or-death situation for its passengers.
1
Failure to secure a seat in a lifeboat virtually guaranteed death because the average
ocean temperature was about 2 degrees Celsius (35 degrees Fahrenheit). Only a
handful of swimmers were successfully rescued from the water (Subcommittee of
the Committee on Commerce, 1912). Moreover, lifeboats were in short supply. The
Titanic actually carried more lifeboats than required by the rules of the time, which
were set by the British Board of Trade in 1894. However, those rules determined
the number of lifeboats according to a ships tonnage, rather than the number
of persons aboard. As a result, the Titanic carried only 20 lifeboats, which could
accommodate 1,178 people, or 52 percent of the people aboard. As the Titanic
began to sink, deck offcers exacerbated the shortage by launching lifeboats that
were partially empty.
We have collected individual-level data on the passengers and crew on the
Titanic, which allow us to analyze some specifc questions: Did physical strength
(being male and in prime age) or social status (being a frst- or second-class
passenger) raise the survival chance? Was it favorable for survival to travel alone
or in company? Does ones role or function (being a crew member or a passenger)
affect the probability of survival? Do social norms, such as Women and children
frst! have any effect? Does nationality affect the chance of survival? We also
explore whether the time from impact to sinking might matter by comparing the
sinking of the Titanic over nearly three hours to the sinking of the Lusitania in
1915, which took only 18 minutes from when the torpedo hit the ship. The answers
to these questions may help us to better understand human behavior in natural
disasters such as hurricanes and tsunamis, as well as in man-made accidents and
1
For detailed accounts of the disaster, see, for example, Lord (1955, 1986), Eaton and Haas (1994),
Quinn (1999), and Ruffman (1999), as well as the Encyclopedia Titanica (http://www.encyclopedia
-titanica.org/), and the information provided by RMS Titanic, Inc. (2010)which was granted salvor-
in-possession rights to the wreck by the U.S. District Court for the Eastern District of Virginiaat their
website (http://www.titanic-online.com).
Bruno S. Frey, David A. Savage, and Benno Torgler 211
terrorist attacks.
2
Indeed, this kind of study can serve as a useful supplement
to the fndings of laboratory and feld experiments (Levitt and List, 2009; List,
2008). Such studies have taught us much about, for example, the extent to which
individuals behave altruistically in helping each other in donating to charities,
along with issues like the role of reciprocity and endogenous punishment (for
example, Fehr, Falk, and Fischbacher, 2008; DellaVigna, 2009). But these studies
seek to capture behavior under normal conditions, and it is not clear how or
whether they would apply on a sinking ship in the North Atlantic Ocean.
Who Was on the Titanic?
We have constructed a detailed dataset of 2,207 persons who were confrmed
to be aboard the R.M.S. Titanic. The data were gathered from the Encyclopedia
Titanica and crosschecked with other sources.
3
Summary statistics of the variables
collected are reported in Table 1. This table also reports in the last column for
each category the fraction that survived. All of the means in the table are shares
of the people on the Titanic who fell into each categoryexcept for age, which is
expressed in years.
Out of 2,207 passengers and crewmembers, 1,501 people, or 68 percent, died.
Based on the records, we were able to gather information about the gender, age,
nationality, port where people boarded the Titanic, and ticket price, which tells us
whether the passenger traveled frst-, second-, or third-class. In addition, we were
able to generate individual information related to travel plans and companions.
Limited information was available with regard to the cabin allocation: we were
only able to fnd this information for 15.2 percent of passengers, and it is based on
information provided by survivors, which means it is likely to include some bias.
(In addition, because the Titanic hit the iceberg shortly before midnight, some of
the passengers were not yet in their cabins, but elsewhere on the ship). Of the
2,207 persons onboard, the age of all but 21 individuals (four crewmembers and
17 passengers) is known. Thus, using age in the regression reduces the number of
observations to 2,186 persons. Out of the 2,186 people, 1,300 were passengers and
886 were crew members. Among the passengers, 43 were servants. Additionally, of
2
In the economic literature, behavior under extreme conditions is rarely treated. Exceptions are
Hirshleifers (1987) behavior under adversity, as well as studies dealing with specifc events occurring
in markets (Barro, 2006). Natural disasters and terrorism have found some attention, especially after
Hurricane Katrina (Tavares 2004; Shugart, 2006; Kenny, 2009). Post-disaster effects have been treated
more often (Dacy and Kunreuther, 1969; De Alessi, 1967; Kunreuther, 1967; Kunreuther and Slovic,
1978; Skidmore and Toya, 2002).
3
While there is some anecdotal conjecture that other people may have been aboard the Titanic as stow-
aways, all of the survivors were on the offcial passenger lists. The cross-checked resources include
Beavis (2002), Bryceson (1997), Committee on Commerce (1912), Eaton and Haas (1994), Geller
(1998), Howell (1999), Lord (1955), Lord (1986), NSARM (2008), Quinn (1999), Ruffman (1999), U.S.
National Archives (2008), and Wreck Commissioners Court (1912).
212 Journal of Economic Perspectives
the 2,186 aboard, 1,704 were male (78 percent), and 460 of the 1,300 passengers
were female (35 percent).
We use the United Nations standard for age, which classifes children as being
less than 16 years of age. Thus, among the 2,186 people aboard, 124 were children
(65 girls and 59 boys). Whether a passenger was in the company of friends and
family or traveled alone has been identifed by anecdotal evidence taken from
family histories and known travel arrangements, ticket numbers, and cabin allo-
cations; those passengers for whom there is no clear or known evidence were
assumed to be traveling alone and were assigned as single. We have complete
information on each persons country of residence (nationality). From this, we
have been able to generate several variables to investigate the effects of nation-
ality. The largest national group (53 percent) was from England, followed by the
United States (19 percent).
Table 1
Summary Statistics for the Titanic
Variables
Proportion of
those on board Fraction survived
Survived 0.320
Females 0.220 0.724
Males 0.780 0.206
Females without children 0.203 0.705
Females with children 0.017 0.947
Age < 16 (children) 0.052 0.478
Age 1650 0.891 0.309
First-class passengers 0.147 0.617
Second-class passengers 0.129 0.404
Third-class passengers 0.321 0.253
Crew 0.403 0.238
Traveling alone 0.217 0.240
Traveling with a group 0.380 0.342
England 0.527 0.253
Ireland 0.052 0.342
Sweden 0.048 0.255
United States 0.192 0.491
Other nationalities 0.181 0.346
Mean age 30.044
Sources: The Encyclopedia Titanica (2008) has been used as the primary
source, which was crosschecked across the following resources: Beavis
(2002), Bryceson (1997), Subcommittee of the Committee on Commerce
(1912), Eaton and Haas (1994), Geller (1998), Howell (1999), Lord (1955),
Lord (1986), NSARM (2010), Quinn (1999), Ruffman (1999), U.S. National
Archives (2010), and Wreck Commissioners Court (1912).
Notes: The number of observations is 2,207, except for age, where it is 2,186.
Traveling with a group includes couples with and without children and/
or servants; singles with children and/or servants; and extended groups
also covering friends.
Behavior under Extreme Conditions: The Titanic Disaster 213
Who Survived?
Before undertaking this study, we would have predicted that certain groups
would be more likely to survive the sinking of the Titanic: prime-age men, frst-class
passengers, those traveling in company, crew members, women with children, and
British subjects (because the Titanic was perceived to be a British ship). But only
some of these hypotheses turned out to be correct. The descriptive statistics in
Table 1 indicate high survival rates for females, frst- and second-class passengers,
children, and a low survival rate for individuals traveling alone or with English and
Swedish nationality. (Recall that the overall survival rate was only 0.320 percent,
so a survival rate greater than 0.320 is considered high.) However, this purely
descriptive analysis gives information about the raw effects and not the partial
effects. Multiple regressions help us to better disentangle the single effects. Table 2
presents estimates from probit regressions
4
in which the dependent variable in our
analysis will be whether someone survived (=1) or not (=0). For each independent
variable in each row, the top fgure is the estimated coeffcient, and below is statis-
tical signifcance (z-value). Coeffcients are not always easy to interpret in a probit
model, so we also present estimates of the marginal effects. For instance, looking
at the marginal effect, we see that a marginal change in age from the average of
30 years is associated with a 0.7 percent decrease in survival.
5
The estimates include
an increasing number of determinants to show the extent to which the estimated
coeffcients are stable across different estimates.
Table 2 shows that we are working with a large set of dummy variables. For
example, in the equation in column 1 we report results of two dummy variables
that describe the social status (ticket class) of the passengers: frst class and second
class. Each of these is coded 1 or 0 depending on whether or not the person is
in that particular status or not. There are actually three categories of ticket status
that are mutually exclusive and exhaustive: frst class, second class, and third class.
4
Pr( y = 1 | x
1
, x
2
, . . . x
k
) = ( +
1
x
1
+
2
x
2
+ . . . +
k
x
k
). Here y is a dummy variable indicating
whether the passenger survived ( y = 1) or not ( y = 0); the variables (x
1
, x
2
, . . . x
k
) are explanatory vari-
ables such as gender, age, etc.; (,
1
,
2
, . . .
k
) are parameters to estimate; and is the cumulative
standard normal distribution function. The role of , which is increasing in its argument, is to keep
the probability Pr( y = 1) in the zero to one interval. A linear probability model would generate ftted
probabilities that can be less than zero or greater than one. Each passenger contributes one observation
on ( y, x
1
, x
2
, . . . x
k
). From a sample of such observations, assumed independent, the parameters can be
estimated by maximum likelihood. This is a standard probit model.
5
As usual in a probit model, the marginal effect of a continuous explanatory variable x
j
is interpreted
here through the partial derivative
Pr( y = 1 | x
1
, x
2
, . . . x
k
)

__

x
j
=
j
( +
1
x
1
+
2
x
2
+ . . . +
k
x
k
),

evaluated at the means, where is the standard normal density function. Since > 0, the sign of the
marginal effect is the same as the sign of coeffcients
j
. For a discrete x
j
, a difference rather than a
derivative is used in place of (1) (change of the dummy variable from 0 to 1). To get, for example, the
marginal effect for age in the frst equation in Table 2, we multiply the coeffcient 0.018 with the stan-
dard normal density function, which leads to a marginal effect of 0.018 0.370 = 0.0067. In this case
we frst calculate the z-score for the stated probability of surviving (Pr(success) = 0.348) which is 0.391.
Next we calculate the probability density function value for that z-score, which gives us the value of 0.370.
214 Journal of Economic Perspectives
Table 2
Determinants of the Probability of Survival on the Titanic
(dependent variable: survived = 1, not = 0)
Dependent variable: Survival of:
Independent variable Passenger Passenger Crew Passenger
All (passengers
and crew) Passenger
Female 1.462*** 1.468*** 1.858*** 1.456*** 1.471***
z-value 17.26 17.44 5.50 16.77 17.52
marginal effect 0.528 0.530 0.640 0.526 0.535
Male ref. group ref. group ref. group ref. group ref. group ref. group
Female with Children 2.368***
z-value 6.25
marginal effect 0.647
Female, No Children 1.401***
z-value 15.87
marginal effect 0.512
Age 0.018***
z-value 5.24
marginal effect 0.007
Age < 16 (Children) 0.382*** 0.807*** 0.743*** 0.835***
z-value 2.83 3.93 3.74 4.00
marginal effect 0.148 0.313 0.077 0.323
Age 1650 ref. group 0.470*** 0.418*** 0.492***
z-value 2.99 2.85 3.07
marginal effect 0.161 0.131 0.168
Age > 50 ref. group ref. group ref. group ref. group
First-class Passengers 1.303*** 1.066*** 1.140*** 1.117*** 1.111***
z-value 11.34 10.62 10.75 10.55 10.39
marginal effect 0.485 0.403 0.429 0.420 0.420
Second-class Passengers 0.462*** 0.387*** 0.407*** 0.482*** 0.488***
z-value 4.37 3.74 3.90 4.41 4.37
marginal effect 0.177 0.148 0.155 0.18 0.187
Third-class Passengers ref. group ref. group ref. group ref. group ref. group
Traveling Alone 0.057 0.064 0.051
z-value 0.62 0.70 0.55
marginal effect 0.021 0.022 0.019
Traveling with a Group ref. group ref. group ref. group
England 0.226** 0.256**
z-value 2.48 2.45
marginal effect 0.079 0.092
Not from England ref. group ref. group
Crew 0.671***
z-value 5.80
marginal effect 0.237
Observations 1,300 1,300 886 1,300 2,186 1,300
Probability >
2
0.000 0.000 0.000 0.000 0.000 0.000
Pseudo R
2
0.292 0.280 0.041 0.286 0.211 0.295
Notes: Dependent variable: Survival (value = 1). The reference groups are Male; Age > 50; Third-class
Passenger; Traveling with a Group (couples with and without children and/or servants, singles with
children and/or servants, and extended group also covering friends); and Not from England.
*, **, *** represent statistical signifcance at the 10, 5, and 1% levels, respectively.
Bruno S. Frey, David A. Savage, and Benno Torgler 215
The excluded category (third class) is the reference group, and each of the coef-
fcients is a comparison between an included category and the reference category.
To increase table readability we report all the reference groups in Table 2.
Prime-Age Men
In the situation of a large excess demand for places in the lifeboats, people with
greater physical strength, namely people in their prime age and men, would have a
physical strength advantage over older people and women in the fght for survival.
The equations in columns 1 to 3 of Table 2 suggest that women both as passen-
gers and crew members had a higher probability of survival. Women passengers
had, compared to men, with age and traveling class held constant, a 53 percent
higher chance of survival; it was even 64 percent higher for female crew members.
The fourth column reveals that persons in prime age (16 to 50) had a 16 percent
higher chance to survive than older persons, which is consistent with the thesis that
physical strength was important in getting to the lifeboats.
Social Status and Ticket Class
The 1,316 passengers (including maids) on the Titanic were traveling as
mentioned before in three different classes: 325 in frst class, 285 in second class,
and 706 in third class. It seems plausible that frst-class passengers would be more
able to secure a place on a lifeboat than people of lesser economic means. First-
class passengers were used to giving orders to the crew, and they were better able
to bargaineven offering fnancial rewards. They were also in closer contact
with the upper echelon crewmembers: in particular, First Offcer Murdoch, who
commanded the loading of lifeboats on the starboard side, and Second Offcer
Lightoller, who did the same on the port side. Moreover, the frst-class passengers
had better access to information about the danger, and the lifeboats were located
close to the frst-class cabins. In contrast, most third-class passengers had little idea
where the lifeboats were located (safety drills for passengers were introduced only
after the Titanic disaster), and they did not know how to reach the upper decks
where the lifeboats were stowed.
Thus, it seems plausible that frst-class passengers would have a higher prob-
ability of survival than second-class passengers; in turn, second-class passengers
would have a higher probability of survival than third-class passengers. Results in the
frst and second columns of Table 2 indicate that frst- and second-class passengers
had a signifcantly better chance to survive than passengers in third class. Passengers
traveling frst class had a more than 40 percent higher chance, and those in second
class about a 16 percent higher chance, to be saved than those in third class.
Social Embeddedness
Passengers traveling in the company of family and friends may be expected to
have a better chance of survival in life and death situations because they are more
likely to receive information indirectly and to obtain psychological and physical
support from others. However, equations in columns 4, 5, and 6 in Table 2 suggest
216 Journal of Economic Perspectives
that it did not matter for survival whether one traveled alone or in the company of
family and friends. It may be that those who were alone were able to focus more
specifcally on their own best interests, rather than being slowed by a group, and
that this counterbalanced any beneft of traveling with a group.
Function
One would expect the experienced crew of 886 men and women to be better
prepared for a catastrophic event than the passengers, to be informed earlier and
better about the location of lifeboats and the danger of sinking, and to have closer
personal contacts with the crewmembers in charge of loading the lifeboats. On the
other hand, the crew has a duty to help save passengers, and they are only supposed
to abandon a sinking ship when that task has been fulflled.
We expect that in life or death situations, such as that encountered on the
Titanic, selfsh interests tend to dominate. Indeed, the equation in column 5 of
Table 2 suggests that the members of the crew had, ceteris paribus, a 24 percent
higher chance of saving themselves than did third-class passengers.
Social Norms
A key social norm under life and death conditions is that women and children
are to be saved frst. This norm may operate either through the actions of male
passengers, or through the offcers loading the lifeboats. Interestingly, no interna-
tional maritime law requires that women and children be rescued frst. However,
similar norms can be found in other areas where people need to be evacuated.
Humanitarian agencies often evacuate vulnerable and innocent civilians, such
as women, children, and elderly people frst. The Geneva Convention provides
special protection and evacuation priority for pregnant women and mothers of
young children (Carpenter, 2003).
The results in column 6 of Table 2 suggest that this norm was indeed in force.
Women in the company of children had a 65 percent higher survival chance than
men, while females without children had a 51 percent higher survival chance.
Focusing only on female passengers in a further specifcation not reported in
Table 2, we fnd that women with children had a 19 percent higher chance of
surviving than women without children.
Nationality
The Titanic was built in Great Britain, operated by British subjects, and manned
by a British crew. Interestingly enough, the Ocean Steam Navigation Company,
popularly known as the White Star line because of the white star appearing on
the company fag, was under the management of the industrial giant, J.P. Morgan.
Nevertheless, the public perceived the Titanic as being a British ship. Thus, it might
be expected that the crew would give preference to British subjects, easily identifed
by their language.
However, columns 4 and 5 of Table 2 reveal a quite different picture. Control-
ling for all other infuences considered above, British passengers had between an
Behavior under Extreme Conditions: The Titanic Disaster 217
8 or 9 percent lower chance of surviving the Titanic disaster than the passengers
of other nationalities aboard. This may be attributed to the fact that the British
behaved with a stiff upper lip, or perhaps British subjects were less likely to believe
that the Titanic would sink.
The Infuence of Time as a Disaster Unfolds
It took 2 hours and 40 minutes between the time the Titanic hit the iceberg
and the moment the ship sank to the bottom of the sea. It can be argued that
this left suffcient time for socially determined patterns of behavior, such as letting
the passengers of the better classes, or women and children, to be saved frst. We
therefore compare the survival probabilities on the Titanic with those of another
well-known shipping disaster, the sinking of the Lusitania only three years later, on
May 7, 1915, as a result of a torpedo attack by a German U-boat, costing the lives
of 1,313 people. It can be argued that on the Lusitania, selfsh behavior prevailed,
while on the Titanic the adherence to social norms and social status dominated. This
difference could be attributed to the fact that the Lusitania sank in only 18 minutes,
creating a situation in which the short-run fight impulse dominates behavior.
In addition, the Lusitania was sunk by violence during a time of war, which
may provoke different reactions. For example, before the sailing of the Lusitania,
warning notices had been printed in the leading newspapers reminding transat-
lantic passengers that a state of war was in effect and that any vessel traveling under
the British fag was liable to come under attack and passengers sailed at their own
risk. On the other hand, there are several reasonable suppositions supporting
the idea that the Lusitania was not at severe risk, primarily that it was capable of
speeds fast enough to outrun enemy torpedoes. In addition, the Lusitania was a
vessel carrying civilian passengers, not a warship, and, it was carrying a considerable
number of neutral American civilians. Maritime law states that in wartime merchant
vessels must be given a warning prior to attack, whereas warships should not expect
any warning. The Lusitania was never given such a warning by the attacking U-boat
(Bailey, 1935).
We were able to collect data containing detailed information about gender,
age, and ticket price (and thus passenger-class status) for the Lusitania. Table 3
shows that the passenger structure with respect to the share of women, age, and
frst-class passengers on the Titanic and the Lusitania was quite similar. In both disas-
ters, 32 percent of the persons aboard survived. On the other hand, the survival rate
with respect to gender and ticket class is substantially different. In the Lusitania, the
survival rates of women, frst-class, and second-class passengers are now lower than
the average survival rate.
We again carried out a probit regression analysis in which the dependent vari-
able indicates whether an individual survived the disaster (=1) or did not survive
(= 0). Table 4 shows the estimated parameters, the signifcance level (indicated by
z-values), and the marginal effects for the Lusitania. These estimates reveal a smaller
218 Journal of Economic Perspectives
number of statistically signifcant determinants, suggesting that in the case of the
sinking of the Lusitania random elements played a larger role than in the case of
the Titanic.
The results in Table 4 indeed indicate that people in their prime age (1650)
had a statistically signifcantly higher survival rate than older people. Prime-age
males had a 17 percent higher survival probability than other persons aboard.
Women in their prime age had a 20 percent higher chance of survival, but not
women in general. A comparison with the Titanic disaster suggests that when a
disaster is perceived to be imminent, individuals in their prime age have an advan-
tage, but not men as such (the coeffcient for female is not statistically signifcant).
Unlike the situation on the Titanic, frst- and second-class passengers did not have
a signifcantly higher chance of survival on the Lusitania; as shown in Table 4, frst-
class passengers fared even worse than those in third class.
The empirical analysis is consistent with the view that the effects of status
(passengers traveling in higher classes have a better chance of surviving) and social
norms (such as saving women and children frst) depend on time. It seems that on
the more slowly sinking Titanic pro-social behavior played a larger role, while more
selfsh conduct prevailed on the rapidly sinking Lusitania. Of course, time may not
be the only factor at work. Natural experiments based on naval disasters may well
have other factors for which control variables would be useful.
Conclusions
The econometric estimates of the factors determining survival during the
sinking of the Titanic produce a coherent story. However, this story is not neces-
sarily in line with the simple model of selfsh homo economicus. While people in their
prime were more likely to be saved, it was womenrather than menwho had a
Table 3
Passenger Structure on the Lusitania and the Titanic
Lusitania Titanic
Variables Mean Fraction survived Mean Fraction survived
Survived 0.326 0.320
Females 0.261 0.280 0.220 0.720
Males 0.739 0.343 0.780 0.206
Age (years) 31.570 30.040
First-class passengers 0.149 0.193 0.147 0.617
Second-class passengers 0.307 0.295 0.129 0.404
Third-class passengers 0.189 0.325 0.321 0.253
Sources: For the Lusitania data, The Lusitania Resource (2010) has been used as the primary source,
which was crosschecked across Butler (2000), Lusitania Online (2010), OSullivan (2000), Preston
(2002), Wreck Commissioners Court (1915). For sources of the data on the Titanic, refer to Table 1.
Bruno S. Frey, David A. Savage, and Benno Torgler 219
better chance of being saved. Children also had a higher chance of surviving. At the
time of the disaster, the unwritten social norm of saving women and children frst
seems to have been enforced.
However, we do fnd evidence suggesting that effects predicted using the stan-
dard homo economicus model are also important. People in their prime age drowned
less often than older people. Passengers with high fnancial means, traveling in
frst class, were better able to save themselves as were passengers in second class
(compared to third class). Crew members who had access to better informational
and relational resources managed to survive more often than others aboard. In
Table 4
Determinants of the Survival on the Lusitania
(dependent variable: survived = 1; not = 0)
Female 0.064
z-value 0.33
marginal effect 0.022
Male ref. group
Age < 16 (Children) 0.312
z-value 1.5
marginal effect 0.111
Age > 50 ref. group
Female, age 1650 0.556**
z-value 2.59
marginal effect 0.199
Male, age 1650 0.493**
z-value 2.42
marginal effect 0.166
First-class Passengers 0.384***
z-value 3.33
marginal effect 0.123
Second-class Passengers 0.033
z-value 0.31
marginal effect 0.011
Third-class Passengers ref. group
Observations 933
Probability >
2
0
Pseudo R
2
0.025
Notes: We carried out a probit regression analysis in which the
dependent variable indicates whether an individual survived
the disaster (=1) or did not survive (=0). For each variable,
we show the estimated parameters, the signifcance level
(indicated by z-values) and the marginal effects. Reference
groups are Male, Age > 50, and Third-class Passengers.
*, **, *** represent statistical signifcance at the 10, 5, and 1%
levels, respectively.
220 Journal of Economic Perspectives
contrast, the British passengers who were the same nationality as most of the crew
members did not use this fact to their advantage. Differences in context are likely
to matter in life-or-death situations. The comparison between the Titanic and the
Lusitania suggests that when time is scarce, individual self-interested fight behavior
predominates, while altruism and social norms and power through social status
become more important if there is suffcient time for them to evolve.
The sinking of the Titanic represents a well-documented, dramatic, life-or-death
situation. However, even under these extreme situations, the behavior of human
beings is not random or inexplicable, but can be explored and, at least in part,
explained by economic analysis.
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