Emotion theory and economic analysis: A review

Since Elster’s seminal review (1998), an abundant literature has revealed the growing interest of economists in the question of emotions. The introduction of emotion into economic analysis has been based essentially on a psychological and neurological conception of emotion. Developing a richer and more complete economics of emotions makes it necessary to also draw on other approaches to emotion from sociology, anthropology, history, and philosophy. The objective of this article is to contribute to enriching the work of economists in this field by proposing a multidisciplinary state of the art of the knowledge derived from the theory of emotions. First, we identify the main stages in the construction of this theory and highlight the essential properties of emotions. Secondly, we show how this knowledge has been used in economic analysis, taking into account the diversity of approaches characteristic of the discipline.