Love is the triumph of the imagination: daydreams about significant others are associated with increased happiness, love and connection

Social relationships and interactions contribute to daily emotional well-being. The emotional benefits that come from engaging with others are known to arise from real events, but do they also come from the imagination during daydreaming activity? Using experience sampling methodology with 101 participants, we obtained 371 reports of naturally occurring daydreams with social and non-social content and self-reported feelings before and after daydreaming. Social, but not non-social, daydreams were associated with increased happiness, love and connection and this effect was not solely attributable to the emotional content of the daydreams. These effects were only present when participants were lacking in these feelings before daydreaming and when the daydream involved imagining others with whom the daydreamer had a high quality relationship. Findings are consistent with the idea that social daydreams may function to regulate emotion: imagining close others may serve the current emotional needs of daydreamers by increasing positive feelings towards themselves and others

Whither Capitalism? Financial externalities and crisis

As with global warming, so with financial crises – externalities have a lot to answer for. We look at three of them. First the financial accelerator due to ‘fire sales’ of collateral assets -- a form of pecuniary externality that leads to liquidity being undervalued. Second the ‘risk- shifting’ behaviour of highly-levered financial institutions who keep the upside of risky investment while passing the downside to others thanks to limited liability. Finally, the network externality where the structure of the financial industry helps propagate shocks around the system unless this is checked by some form of circuit breaker, or ‘ring-fence’. The contrast between crisis-induced Great Recession and its aftermath of slow growth in the West and the rapid - and (so far) sustained - growth in the East suggests that successful economic progress may depend on how well these externalities are managed

Dialectic tensions in the financial markets: a longitudinal study of pre- and post-crisis regulatory technology

This article presents the findings from a longitudinal research study on regulatory technology in the UK financial services industry. The financial crisis with serious corporate and mutual fund scandals raised the profile of compliance as governmental bodies, institutional and private investors introduced a ‘tsunami’ of financial regulations. Adopting a multi-level analysis, this study examines how regulatory technology was used by financial firms to meet their compliance obligations, pre- and post-crisis. Empirical data collected over 12 years examine the deployment of an investment management system in eight financial firms. Interviews with public regulatory bodies, financial institutions and technology providers reveal a culture of compliance with increased transparency, surveillance and accountability. Findings show that dialectic tensions arise as the pursuit of transparency, surveillance and accountability in compliance mandates is simultaneously rationalized, facilitated and obscured by regulatory technology. Responding to these challenges, regulatory bodies continue to impose revised compliance mandates on financial firms to force them to adapt their financial technologies in an ever-changing multi-jurisdictional regulatory landscape

Imagined contact can be more effective for participants with stronger initial prejudices

Imagined contact is an intervention that combines the prejudice-reduction of intergroup contact with the easy, low-risk application of imagery-based techniques. Accordingly, it can be applied where direct contact is difficult or risky. However, a possible limitation of imagined contact is that it may not be effective for participants with stronger initial prejudices, which would limit its usefulness and application. Two experiments (N1 = 103, N2 = 95) investigated whether initial prejudice moderated imagined contact's effects on explicit attitudes, behavioral intentions (Experiment 1), implicit attitudes, and petition-signing behaviors (Experiment 2) toward two different outgroups. In both experiments, imagined contact was more effective when initial prejudice was higher. Implications for imagined contact theory and application are discussed

The bodily social self: a link between phenomenal and narrative selfhood

The Phenomenal Self (PS) is widely considered to be dependent on body representations, whereas the Narrative Self (NS) is generally thought to rely on abstract cognitive representations. The concept of the Bodily Social Self (BSS) might play an important role in explaining how the high level cognitive self-representations enabling the NS might emerge from the bodily basis of the PS. First, the phenomenal self (PS) and narrative self (NS), are briefly examined. Next, the BSS is defined and its potential for explaining aspects of social cognition is explored. The minimal requirements for a BSS are considered, before reviewing empirical evidence regarding the development of the BSS over the first year of life. Finally, evidence on the involvement of the body in social distinctions between self and other is reviewed to illustrate how the BSS is affected by both the bottom up effects of multisensory stimulation and the top down effects of social identification