Social decisions are heavily influenced by emotion. For decades, the dominant research paradigm has been characterized by a focus on the decision maker's own positive or negative mood. We argue that a full understanding of the role of emotion in social decision making requires a complementary focus on interpersonal effects (i.e., the effects of one individual's emotions on the other's behavior); a focus on discrete emotions rather than general mood states; and a distinction between cooperative and competitive settings. To advance insight into these issues, we present the Emotions as Social Information (EASI) model. The model is grounded in two basic assumptions, namely that individuals use others' emotions to make sense of ambiguous situations, and that the effects of others' emotions and the processes that drive them depend critically on the cooperative or competitive nature of the situation. A review of recent research supports our analysis. We demonstrate that the interpersonal effects of emotions are pervasive and can be better understood in terms of the unique social functions of each emotion than in terms of valence. Effects in cooperative settings are best explained in terms of affective reactions (i.e., emotional contagion, affect infusion, and mood management), whereas effects in competitive contexts are better understood in terms of the strategic inferences individuals draw from other's emotions. We conclude by discussing the implications of our model and highlighting avenues for future research.
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