I've found that smiles are typically only given in a situation where two individuals or groups are passing eachother by in relative isolation and must establish eye contact. Smiles and murmured greetings follow, sometimes a brief conversation involving small talk before separating. The setting matters. A nature trail almost guarantees a greeting, whereas a sidewalk in a shopping district is far less likely to net you a response.
The whole procedure is an awkward aspect of social interaction for me. I am unsure of the expected behavior at various settings, sometimes resulting in an unreturned smile or scowl. At a former work place, I would greet people who passed my area - instead of a smile and a returned greeting, I received unexpected laughter, as though it was utterly ridiculous of me to acknowledge their presence.
Nowadays, to avoid unpleasant situations, I will likely tip my head in acknowledgement of a person instead of smiling openly or greeting them with words. If they don't return the nod, I feel less rejected than if they were to scowl or glare upon seeing my smile.
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