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"How much did Santa's sleigh cost? Nothing, it was on the house."

This joke is met by groans that resonate through a warehouse in London.

We're at a humor-evaluation meeting with a firm that makes supplies for social events. Its catalogue features festive crackers.

The company's founder smiles, almost sheepishly at the gag. But the pun has made the cut and will appear in upcoming crackers.

"The success is gauged by the gag by the volume of groans and the intensity of the groans at the table," the founder explains.

The key to a great holiday cracker joke is not the identical as a stand-up joke per se. It is entirely about the context - in this instance, the shared amusement of the holiday dinner table with elders, children and possibly friends.

"The goal is for the gag to be something that brings the child in harmony with the 80-year-old," she states.

The Science Of Shared Laughter

Gathering to enjoy communal amusement is not only ancient, scientists argue, it is likely to be pre-human.

"So when you are chuckling with people at the Christmas table you are engaging in what's very likely a truly primordial mammalian social vocalisation," explains a professor.

Communal laughter, she explains, helps forge and strengthen social bonds between individuals.

Scientists have discovered that a lack of such social exchanges can significantly harm mental and physical well-being.

"Those you converse with, and laugh with, it results in enhanced amounts of endorphin uptake," she adds.

These natural chemicals are the body's "happy chemicals" and are released both to alleviate tension and discomfort and in reaction to pleasurable experiences, such as chuckling with friends over a particularly terrible Christmas cracker gag.

"It's not simply chuckling at a silly pun with a Christmas cracker," she states. "You are in fact doing a lot of the truly important work of building, preserving the social bonds you have with those you love."

What Happens In the Mind?

But what is truly taking place inside the brain when we hear a joke?

A tremendous amount happens in reaction to comedy, it turns out.

Using brain scanning technology, a type of brain scanner which shows which areas of the brain are working harder, scientists have been able to chart the areas that get more blood flow.

Testing involves imaging the minds of volunteer participants and then subjecting them to a database of funny phrases, accompanied by either a non-emotional sound, or pre-recorded chuckles.

"In the scanner we observed a very interesting activation pattern of neural activity," says the neuroscientist.

A joke activates not just the areas of the brain responsible for auditory processing and interpreting language, but also neural areas associated with both planning and initiating motion and those involved in vision and memory.

Combine these elements together, and individuals hearing a joke have a sophisticated set of neural reactions that support the amusement we hear.

The Infectious Power of Laughter

Researchers discovered that when a humorous phrase is paired with chuckles there is a greater reaction in the brain than the identical phrase when followed by a neutral sound.

"This was in parts of the mind that you would use to move your face into a smile or a laugh," she explains.

It indicates we are not just reacting to humorous jokes, they are responding to the laughter that follows them.

Amusement, says the professor, can be contagious.

So what does this mean for the chuckles heard around a holiday gathering?

"You laugh harder when you know people," she says, "and laughter increases further when you are fond of them or love them."

When it comes to Christmas cracker puns, she says, the feel-good effect is more likely to be triggered not by the gag itself, but from the reaction to it.

"The laughter is key. The joke is the terrible holiday cracker joke, and it's just a reason to chuckle together."

The Search for the Perfect Festive Pun

Will we ever discover the perfect joke?

Probably not, but that has not stopped experts from attempting to.

Years ago, a professor established a scientific project for the world's funniest gag.

More than tens of thousands of gags submitted, with ratings provided by 350,000 participants globally, he has a better idea than many as to what works and what does not.

The ideal Christmas cracker joke must be brief, he says.

"But they also be bad gags, jokes that cause us to moan," he adds.

The increasingly "terrible" the gag, he states the better.

"The reason is that if no-one finds it funny – it's the joke's fault, not yours.

"What's interesting about the holiday cracker puns is that none of us considers them humorous.

"That's a common experience around the table and I think it's wonderful."