The role of affects in economics

The aim of this paper is to understand the crucial role of affects (emotions, moods and affective dispositions) in economics. Firstly, we analyse the important question of the differentiated nature of what is called "affect" in the psychological literature. Our review presents the different methods used recently by some economists in order to measure the valence of emotions or to induce "bad or good" moods to their subjects before the beginning of the games. Secondly, we analyze the behavioural impact of incidental emotions in experimental economics, We focus on the role of affect in risky behaviour and social games (cooperation, negotiation, trust). Our review shows the crucial role of intentions, anticipations, emotion expressions, as well as unconscious processes or judgment biases, in observed behaviours in the laboratory. Thirdly, we examine the first attempts of introduction of the role of affects in economic behavioural theory (inter temporal choice, social preferences models).