When Thomas Jefferson placed 'the pursuit of happiness' along with life and liberty in The Declaration of Independence he was most likely referring to Aristotle's concept of happiness, or eudaimonia. Eudaimonia is not about good feelings but rather the fulfilment of human potentials. Fulfilment is made possible by virtue; the moderation of desire and emotion by reason. The Psychology of Happiness was the first book to bring together psychological, philosophical, and physiological theory and research in support of Aristotle's view. It examines the similarity between Aristotle's concept of virtue and modern cognitive theories of emotion. It discusses the discovery of human potentials, the development of virtue and its neurological basis, the mistaken idea that fulfilment is selfish, and several other issues related to the pursuit of a good human life.

What is happiness? -- Happiness as fulfillment -- Aristotle's ethics -- Actualization : psychological views -- Finding potentials -- The things we need to be happy : goods, intrinsic motivation, and the golden mean -- Introduction to virtue -- Some of the more important moral virtues -- Virtue and emotion -- Early psychological views of virtue and emotion -- Virtue and emotion : recent psychological views -- The physiological basis of virtue -- Emotional intelligence -- The development of virtue -- Psychological views of virtue development -- The polis -- Contemplation : a different kind of happiness.