We examine whether a positive feedback loop exists between spending money on others (i.e. prosocial spending) and happiness. Participants recalled a previous purchase made for either themselves or someone else and then reported their happiness. Afterward, participants chose whether to spend a monetary windfall on themselves or someone else. Participants assigned to recall a purchase made for someone else reported feeling significantly happier immediately after this recollection; most importantly, the happier participants felt, the more likely they were to choose to spend a windfall on someone else in the near future. Thus, by providing initial evidence for a positive feedback loop between prosocial spending and well-being, these data offer one potential path to sustainable happiness: prosocial spending increases happiness which in turn encourages prosocial spending.
Aknin, L. B., Dunn, E. W., &Norton, M. I. (2012). Happiness runs in a circular motion: Evidence for a positive feedback loop between prosocial spending and happiness. Journal of Happiness Studies, 13(2), 347-355.