A Literature Review of Social Mood

Journal of Behavioral Finance, Vol. 7, No. 4, pp. 193-203, 2006

15 Pages Posted: 1 Sep 2011

Abstract

Emotions exert a significant influence on financial behavior. The "socionomic hypothesis" posits social mood, the collective mood of individuals, as a primary causal variable in financial and social trends. In order to provide a scientific basis for the study of social mood, this article reviews psychological research on major mood-related elements of personality: affect, motivation, and personality traits. We examine the structure and functions of these core personality dimensions, and discuss research on contagion processes by which individuals' moods spread and manifest in a collective social mood. We also address implications for financial and economic behavior. Social mood is rooted in empirically established personality dimensions that are fundamental to human nature, and can influence financial outcomes.

Suggested Citation

Olson, Kenneth R., A Literature Review of Social Mood. Journal of Behavioral Finance, Vol. 7, No. 4, pp. 193-203, 2006. Available at SSRN: https://ssrn.com/abstract=1919833

Kenneth R. Olson (Contact Author)

Ft. Hays State University ( email )

Hays, KS 67601
United States

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