Happiness?

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What does happiness do exactly.
Ive pushed it to 100 and have yet to see a difference

 
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Originally posted by Solsund:

What does Happiness do? How can I gain a higher Happiness capacity? What’s a Fuzzlehorn?
Happiness is a stat that determines how happy your villagers are. This has no major effect on the game play. What it does affect is what type of decorations you are able to build and also how strong of a potion your villagers may drop when they talk to each other. You gain a higher Happiness capacity by building decorative items for your villagers. The Fuzzlehorn is a building that raises your Happiness cap buy a small amount and makes it so that instead of chatting you can send your villagers to pet it, which gains three happiness instead of one.